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:

Strike-Slip Fault

A type of fault where two blocks of the Earth's crust slide past one another horizontally, with little to no vertical movement.

Normal Fault

A type of fault where the hanging wall has moved downward relative to the footwall due to tensional forces.

Horizontal Compression

The force that acts in parallel opposition across the Earth's crust, leading to folding, faulting, or shortening of geological formations.

Horizontal Tension

Refers to the stress acting parallel to the Earth's surface, which can cause stretching and fracturing of geological structures.