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:

Unpaid Family Leave

A period of time, mandated by law, during which employees can take leave from their jobs for family or medical reasons without pay but without losing their job.

Sick Leave Programs

Policies established by organizations that allow employees to take paid time off from work when they are ill.

Unemployment Insurance Benefits

Financial payments made to individuals who have lost their job through no fault of their own to support them while they seek new employment.

Workers' Compensation Benefits

Payments and benefits provided to employees who are injured or become ill as a direct result of their job.