Which of the Following Statements Concerning Internal Controls Is True

question 164

Multiple Choice

Which of the following statements concerning internal controls is true?

• A) Internal administrative controls are designed to limit the amount of funds spent on investments.
• B) The control procedure, separation of duties, prohibits the employment of a husband and wife or other closely related parties within the same company.
• C) Internal accounting controls are limited to the policies and procedures used to protect the company from embezzlement.
• D) A strong internal control system provides reasonable assurance that the objectives of a company will be accomplished.

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Definitions:

Work Flow Organization

The arrangement and management of tasks, procedures, and resources to optimize the flow of work processes in an organization.

Communication Plan

A document that outlines an organization's strategy for communicating with internal and external stakeholders, including methods, frequency, and responsibilities.

Leadership Team

A group of individuals in charge of guiding, managing, and making strategic decisions for an organization or project.

Gatekeepers

Individuals or entities that control access to resources or decision-making processes within an organization.