An Effective System of Internal Control Is Designed to Detect

question 165

Multiple Choice

An effective system of internal control is designed to detect the following except for:

• A) collusion
• B) fraud
• C) theft
• D) irregularities

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Definitions:

Interest Rates

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.

Interest-Sensitive Goods

These are goods whose demand fluctuates in response to changes in interest rates, often because they involve large financial investments or credit to purchase.

Financial Crisis

A situation where financial assets suddenly lose a significant part of their nominal value, often leading to bankruptcies and economic downturns.

Regulatory Changes

Modifications or updates in laws and regulations that affect how businesses operate and compete.