One of the Most Important Reasons for Having a System

question 3

Multiple Choice

One of the most important reasons for having a system of internal control is to:

• A) improve the effectiveness and efficiency of the operations of the organization.
• B) ensure no employees have ever been convicted of stealing.
• C) eliminate any temptations that may be presented to employees that could lead to theft from the company.
• D)prevent a salesperson from using a company car for personal transportation.

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Definitions:

Internal Validity

The extent to which a study provides evidence that a causal relationship exists between the variables it examines, free from confounding factors.

Random Assignment

Use of a random "chance" procedure (such as a random number generator or coin toss) to determine the condition in which an individual will participate.

Confounding Variable

A factor other than the independent variable that might produce an effect in an experiment, leading to inaccurate results if not controlled.

Independent Variable

The variable that is changed or controlled in a scientific experiment to test the effects on the dependent variable.