Which of the Following Statements About Internal Control Is Not

question 73

Multiple Choice

Which of the following statements about internal control is not correct?

• A)The costs of the control should not exceed the benefits.
• B)The auditor's assessment of detection risk is inversely related to the assessment of control risk.
• C)Stronger internal controls result in an increase in the number of required substantive audit procedures.
• D)Management is responsible for the maintenance of internal control.

---

Definitions:

Orders by Telephone

The practice of placing orders for goods or services by speaking to a representative over the phone.

Obedience Decreased

A reduction in the likelihood or frequency of individuals complying with authority figures or established rules.

Administer Shocks

This involves delivering electric shocks to an individual or animal in a controlled setting, often used in psychological experiments to study behavior and learning.

Agentic State

A psychological state in which an individual attributes their actions to the orders of an authority figure, thereby relinquishing responsibility.