A Good System of Internal Control

question 8

Multiple Choice

A good system of internal control:

• A) Encourages adherence to prescribed managerial policies.
• B) Promotes operational efficiencies.
• C) Eliminates the need for an audit.
• D) Both encourages adherence to prescribed managerial policies and promotes operational efficiencies.
• E) All of these answers are correct.

---

Definitions:

Absolutism

A political doctrine and practice where a single ruler or government holds absolute power, without legal, electoral, or social checks and balances.

Ethical Relativism

The theory that holds that morality is relative to the norms of one's culture, meaning that what is considered morally right or wrong varies from society to society.

Consequentialism

An ethical theory that judges whether something is right or wrong based on the consequences of the action, rather than the action itself.

Utilitarianism

An ethical theory that suggests the best action is the one that maximizes utility, often defined as maximizing happiness and reducing suffering.