The Internal Control Objective of 'Classified' Means There Are Controls

question 59

Multiple Choice

The internal control objective of 'classified' means there are controls in place to ensure that

• A) fictitious or duplicate transactions are not included in the books of an organization.
• B) correct amounts are assigned to transactions.
• C) transactions are recorded in the correct accounting period.
• D) transactions are charged and allocated to the correct general ledger account.

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Definitions:

Hierarchy

A system or organization in which people or groups are ranked one above the other according to status or authority.

Vertical Division of Labour

The differentiation of job roles based on hierarchical positions within an organization, where tasks are divided according to levels of authority and expertise.

Functional

Related to the natural or intended purpose of something, describing something that is designed to be practical and useful rather than merely attractive.

Geographic

Pertains to the study of Earth's surfaces, locations, and environments, including the relationships between people and their environments.