Which of the Following Best Explains One of the Four

question 9

Multiple Choice

Which of the following best explains one of the four basic purposes of internal control?

• A) Eliminating error.
• B) Uncovering fraud.
• C) Promoting confidence in financial statements.
• D) Eliminating the need for audits.

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Definitions:

Ecological Fallacy

The error of assuming that information about group characteristics can be used to make inferences about individuals within that group.

Cultural Appropriateness

The extent to which behaviors, attitudes, or policies are sensitive and suitable to the culture of a particular group or community.

Tariffs

Taxes imposed on imported goods and services, which can affect trade relations and economic policies between countries.

Transnational Corporations

Large companies that operate and have assets in more than one country, functioning with a global perspective.