Which of the Following Is Not a Principle of Internal

question 10

Multiple Choice

Which of the following is not a principle of internal control?

• A) Establishing clear lines of responsibility
• B) Division of responsibility for related transactions
• C) Separation of record keeping and custody of assets
• D) Placing excess cash on fixed deposit to earn interest

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Definitions:

Conflict Management

The practice of identifying and handling conflicts in a sensible, fair, and efficient manner, with the goal of reducing negative outcomes.

Buffers

Mechanisms or measures put in place to reduce the impact of shocks or stresses on a system.

Interdependence

The mutual reliance between two or more groups, organisms, or objects, where each is dependent on the others for success or survival.

Win-Lose

A competitive situation where one party's gain is directly proportional to another party's loss.