Which of the Following Statements About Internal Controls Are Correct

question 104

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 answers 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)What companies say they do is often quite different from what they actually do.
• F)Both A and B
• G)Both B and E
• H)Both C and D

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Definitions:

Southern Pride

A term often associated with regional pride in the Southern United States, focusing on heritage, history, and cultural identity.

Confederate Leaders

Individuals who held significant military or political positions within the Confederate States of America during the American Civil War.

Lincoln's Demands

Refers to the conditions set forth by President Abraham Lincoln during the American Civil War, including the preservation of the Union and the abolition of slavery.

Lee Surrender

The event on April 9, 1865, when Confederate General Robert E. Lee surrendered his army to Union General Ulysses S. Grant, effectively ending the American Civil War.