When Internal Controls Are Effective

question 39

Multiple Choice

When internal controls are effective:

• A) there will be an increased reliance on substantive tests of transactions and account balances
• B) control risk will also be high
• C) the organisation is more likely to achieve its strategic and operating objectives
• D) the organisation is less likely to achieve its strategic and operating objectives

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Definitions:

Tax Increases

The act of raising governmental levies on income, property, sales, or transactions, leading to a higher financial burden on the taxed entities.

Severe Recession

A period of significant decline in economic activity across the economy that lasts for an extended period of time.

Aggregate Demand

The total demand for all goods and services in an economy at a given overall price level and in a given time period.

New Deal

A series of programs, public work projects, financial reforms, and regulations enacted by President Franklin D. Roosevelt in the United States during the 1930s.