A Company's Internal Control System

question 181

Multiple Choice

A company's internal control system:

• A) Eliminates the company's risk of loss.
• B) Monitors company and employee performance.
• C) Eliminates human error.
• D) Eliminates the need for audits.
• E) Eliminates the need for managers' certification of controls.

---

Definitions:

Proportion

A statistical measure that refers to the fraction of the total that possesses a certain attribute or characteristic.

Mutually Exclusive

Two events that cannot happen at the same time, meaning the occurrence of one event excludes the occurrence of the other.

Independent Events

Two or more events that have no impact on the likelihood of each other's occurrence.

P(A And B)

The chance of event A occurring together with event B.