Which of the Following Statements About Internal Control Is Incorrect

question 70

Multiple Choice

Which of the following statements about internal control is incorrect?

• A) Internal control is a very broad concept.
• B) Internal control eliminates the possibility of fraud and error.
• C) Internal control encompasses all of the elements of an organization.
• D) Internal control provides reasonable assurance about the achievement of the entity's objectives.

Grasp how incentive pay strategies, like profit sharing and the Scanlon plan, align with organizational goals and employee motivations.

Acknowledge the potential ethical issues and risks associated with incentive pay, especially for executives.

Identify how incentive pay is used to influence behavior and performance in organizational settings.

Examine the operational and strategic considerations in selecting and implementing different types of incentive pay plans.

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Definitions:

Performance Planning

The process of setting performance expectations and goals for teams or individuals to guide desired outcomes.

Policy Making

The process of creating rules, laws, or guidelines that govern the behavior of individuals and organizations.

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The economic system of Japan, known for its combination of modern industry, advanced technology, and a strong governmental role in regulating the economy.

Quality Movement

A management approach focusing on continuous improvement of processes, products, and services through customer feedback and systematic problem-solving.