A Properly Designed Internal Control System

question 26

Multiple Choice

A properly designed internal control system:

• A) Lowers the company's risk of loss.
• B) Insures profitable operations.
• C) Eliminates the need for an audit.
• D) Requires the use of non-computerized systems.
• E) Is not necessary if the company uses a computerized system.

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Definitions:

Involvement

The degree of interest and personal significance that a consumer attaches to a product, brand, or activity.

Motivation

Refers to the psychological processes that prompt and direct human behavior towards achieving certain goals or fulfilling needs.

Maslow's Hierarchy

A theory in psychology proposed by Abraham Maslow, outlining a hierarchy of human needs from basic physiological needs to self-actualization.

Development Of Motives

The formation or evolution of reasons behind individuals' behaviors, driving them to act in certain ways.