Multiple Choice
The concept of reasonable assurance suggests that
A) the cost of an internal control should be less than the benefit it provides
B) a well-designed system of internal controls will detect all fraudulent activity
C) the objectives achieved by an internal control system vary depending on the data processing method
D) the effectiveness of internal controls is a function of the industry environment
Correct Answer:

Verified
Correct Answer:
Verified
Q102: Explain the problems associated with inappropriate accounting
Q103: The ethical principle of justice asserts that
Q104: Explain the grandfather-father-son backup technique.
Q105: Describe two types of transposition errors.
Q106: When certain customers made cash payments to
Q108: Section 404 requires that corporate management (including
Q109: Internal control systems have limitations.These include all
Q110: All of the following are factors in
Q111: Explain why collusion between employees and management
Q112: SAS 109 requires auditors to obtain sufficient