Which Statement Is True Concerning the Documentation of Internal Control

question 80

Multiple Choice

Which statement is true concerning the documentation of internal control?

• A)Documentation should be sufficient to support the design and operating effectiveness of internal controls.
• B)Documentation requirements are standardized by the PCAOB.
• C)Documentation of disbursements requires paper and electronic documentation.
• D)Documentation of all transaction controls should be tested on an annual basis.

---

Definitions:

Shadow

An area of darkness created when an object blocks light from reaching a surface behind it.

To-Be-Attended-To

Refers to information or stimuli that require focus and cognitive processing in a given scenario.

Priming Effects

The influence that a prior stimulus exerts on subsequent cognitive processes, enhancing or inhibiting the response to a subsequent stimulus.

Knowledge-Driven

Pertains to processes or approaches informed or guided by accumulated knowledge or data.