When Internal Controls Are Effective

question 1

Multiple Choice

When internal controls are effective,

• A) there will be an increased reliance on substantive tests of transactions and account balances.
• B) control risk will also be high.
• C) the organization is more likely to achieve its strategic and operating objectives.
• D) the organization is less likely to achieve its strategic and operating objectives.

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Definitions:

Network

A system of interconnected people or things, facilitating communication, sharing, and resource exchange.

Social

Relating to society or its organization, focusing on the interactions and relationships among individuals within communities or groups.

Dependency

A state of relying on others for support, resources, or decision-making power.

Relies

Refers to the act of depending on or trusting in something or someone.