Indicate Whether Each of the Following Statements About Internal Control

question 152

True/False

Indicate whether each of the following statements about internal control and ethics is true or false.
-An internal control system consists of policies and procedures that reduce opportunities for fraud

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Definitions:

Contractual Obligations

Legal duties that arise out of agreements between two or more parties where each has responsibilities to perform as specified in the contract.

Assignment

The transfer of rights, property, or obligations from one party to another.

Delegation

The act of assigning responsibility or authority from one person to another to carry out specific activities.

Incidental Beneficiary

A third party who benefits from a contract between two other parties, albeit without any intention from the contracting parties to benefit the third party.