Which of the Following Is NOT a Design Feature of Effective

question 4

Multiple Choice

Which of the following is NOT a design feature of effective internal controls?

• A)Allow greater reliance by investors on reported financial statements.
• B)Prevent fraudulent or errant financial reporting.
• C)Ensure the company's price advantage over competitors.
• D)Prevent misuse of company funds by employees.

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Definitions:

Demand Characteristics

Psychological experiment artifacts where participants form an interpretation of the study's purpose and unconsciously change their behavior to fit that interpretation.

Experimental Conditions

The controlled environments or set of procedures in scientific research designed to test hypotheses under standardized settings.

Randomly Assigned

A research method where study participants are allocated to different groups on a chance basis, ensuring that each participant has an equal opportunity to be assigned to any given group.

Memory Encoding

The process by which perceived information is transformed and stored in the brain as memory, making it retrievable for future use.