Of the Following Statements About Internal Controls, Which One Is

question 28

Multiple Choice

Of the following statements about internal controls, which one is least likely to be correct?

• A) No one person should be responsible for the custodial responsibility and the recording responsibility for an asset.
• B) Transactions must be properly authorized before such transactions are processed.
• C) Because of the cost-benefit relationship, a client may apply controls on a test basis.
• D) Control procedures reasonably ensure that collusion among employees cannot occur.

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Definitions:

Irrational

Describes actions or decisions not based on logical reasoning, sound judgment, or factual analysis.

Thumb Culture

Refers to the behaviors and skills developed from frequent use of thumb-operated devices, such as smartphones and gaming consoles.

Volunteering

The act of offering services or doing work for free, often to support a cause, organization, or community.

Public Transit

is a system of various modes of transportation provided by or available to the public, including buses, trains, subways, and others.