Who Is Responsible for Establishing and Maintaining the Internal Control

question 65

Multiple Choice

Who is responsible for establishing and maintaining the internal control system?

• A)the internal auditor
• B)the accountant
• C)management
• D)the external auditor

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Definitions:

Equipment

Tangible assets used in operations, such as machinery or computers, that have a useful life beyond one accounting period.

MACRS

Modified Accelerated Cost Recovery System, a method of depreciation in the United States that allows businesses to recover investments in certain property through tax deductions over a specified life.

Scrap Value

The estimated value that an asset will realize upon its sale at the end of its useful life; often used in depreciation calculations.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, obsolescence, or other declines in value.