Internal Control Procedures

question 69

Multiple Choice

Internal control procedures:

• A) Eliminate the risk of loss.
• B) Include policies and procedures to safeguard assets.
• C) Prevent unavoidable losses.
• D) Both eliminate the risk of loss and include policies and procedures to safeguard assets.
• E) All of these answers are correct.

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Definitions:

Evidence

Information or facts that support the truth or validity of a statement or belief.

Justification Reports

Documents that provide reasons and analysis to support particular decisions, actions, or recommendations.

Feasibility Reports

Evaluations or studies to assess the practicality and viability of a proposed project or idea.

Business Plans

Structured documents that outline the goals, strategies, market research, financial projections, and operational plans of a business.