A Critical Element of Control Is Monitoring

question 56

Multiple Choice

A critical element of control is monitoring.What is most likely to happen if management fails to monitor an internal control?

• A)Necessary improvements will not be identified.
• B)Personnel are likely to stop observing the control.
• C)The inherent risk of an error will increase.
• D)The auditor is likely to assume the control is working when it might not be.

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Definitions:

Fundamental Economic Question

The basic inquiries regarding how a society decides on the allocation of scarce resources to satisfy unlimited wants.

Market System

An economic system where decisions regarding investment, production, and distribution are based on supply and demand.

Dollar Votes

A concept in economics where consumers show preference for goods and services by how they spend their money, influencing production and market trends.

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