Which of the Following Statements About Internal Controls Are Correct

question 100

Multiple Choice

Which of the following statements about internal controls are correct?

• A)It is not possible to have perfect (materially correct)financial statements and no internal controls.
• B)It is possible to have perfect internal controls and materially incorrect financial statements.
• C)Testing internal controls does not answer the question,"Are the financial statements correct?" It only answers the question,"Are the controls working to prevent or detect misstatements in the financial statements?"
• D)Control tests answer the question,"Are the account balances correct?"
• E)Both A and B
• F)Both B and C
• G)Both C and D

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Definitions:

Mental Representation

Internal cognitive symbols that represent external reality or abstract concepts, allowing us to think about the world.

Sensory Experience

The perception and interpretation of information gathered through the senses, leading to an individual's experience of the world.

Linguistic Determinism

The hypothesis that language shapes and limits human thought processes and perception of reality.

Cultural Influence

Cultural influence refers to the way that culture shapes individuals' perceptions, behaviors, and understanding of the world around them.