Internal Controls Can Never Be Regarded as Completely Effective

question 10

Multiple Choice

Internal controls can never be regarded as completely effective. Even if company personnel could design an ideal system, its effectiveness depends on the

• A) adequacy of the computer system.
• B) proper implementation by management.
• C) ability of the internal audit staff to maintain it.
• D) competency and dependability of the people using it.

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Definitions:

Daily Duties

Represents the routine tasks and responsibilities that an individual is expected to perform regularly, often as part of their employment or role.

Supervision

The act of overseeing or managing people or activities to ensure that tasks or operations are carried out effectively.

Organizational Restructuring

The process of changing the structure, operations, or strategies of an organization to improve efficiency, effectiveness, or adapt to new conditions.

Decentralization

The distribution of power across all levels of the organization.