Which of the Following Is Not a Generally Recognized Internal

question 53

Multiple Choice

Which of the following is not a generally recognized internal control procedure?

• A) Establishment of clear lines of authority.
• B) The minimization of labor cost.
• C) Requiring regular vacations for employees.
• D) Having employees covered by a fidelity bond.

---

Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 means the stock is more volatile than the market, while less than 1 means less volatile.

Residual Standard Deviation

A statistical measure that quantifies the amount by which an observed variable differs from its estimated value.

Sharpe's Measure

A risk-adjusted performance metric that measures the excess return per unit of deviation in an investment asset or portfolio.

Residual Standard Deviation

A measure of the amount by which each observed value in a data set differs from the average of those values.