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:

Legal Cause

A legally sufficient reason to file a lawsuit, based on recognized legal principles.

Duty To Render

The legal or ethical obligation to provide a certain level of care or service, especially in professional or emergency situations.

Peril To Herself

Refers to someone being in a situation or engaging in behavior that poses a significant risk of harm to their own well-being.

Proximate Cause

A principle in the law of negligence that determines whether the harm or injury suffered by the plaintiff was a foreseeable consequence of the defendant's action or inaction.