Which of the Following Is an Internal Control Procedure

question 90

Multiple Choice

Which of the following is an internal control procedure?

• A)segregation of controls
• B)authorization procedures
• C)reliable transaction trails
• D)independent reconciliations
• E)relevant controls that limit access to assets
• F)both A and C
• G)both A and E
• H)Both B and D

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Definitions:

Portfolio Theory

A framework for constructing a portfolio of assets aimed at maximizing return for a given level of risk.

Business-Specific Risk

Variation in the return on a stock investment caused by things that affect specific businesses or industries.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be eliminated through diversification, often related to economic, political, or social factors.

Market Risk

Variation on the return on a stock investment caused by things that tend to affect all stocks.