Which of the Following Statements About Internal Controls Are Correct

question 42

Multiple Choice

Which of the following statements about internal controls are correct?

• A)It is 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 answers the question,"Are the financial statements correct?"
• D)Control tests answer the question,"Are the account balances correct?"
• E)Both A and B
• F)Both C and D

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Definitions:

Adrenaline

A hormone and neurotransmitter released in response to stress, increasing heart rate, and energy levels.

Physical Effects

Refer to the changes or impacts on the body or its systems due to external or internal factors.

Schachter-Singer Experiment

A psychological study that explored the connection between cognitive processes and emotions, suggesting emotions result from physiological arousal and situational cues.

Emotional Experience

The complex state of feeling that results from the interaction of biological, psychological, and social factors, influencing mood, temperament, and personality.