Which of the Following Suggests a Weakness in the Internal

question 69

Multiple Choice

Which of the following suggests a weakness in the internal control environment?

• A) the firm has an up-to-date organizational chart
• B) monthly reports comparing actual performance to budget are distributed to managers
• C) performance evaluations are prepared every three years
• D) the audit committee meets quarterly with the external auditors

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Definitions:

Power

The ability or capacity of an individual or group to influence or control the actions, behaviors, and opinions of others.

Relationships

Connections or bonds between individuals or entities based on various factors like emotions, contracts, or mutual interests.

Achievements

The successful completion or attainment of goals, objectives, or milestones.

Episodic

Occurring sporadically or in isolated instances; not continuous.