ITPEC IP October 2018 Question 64
ITPEC IP October 2018 — Question 64 of 100
Effective internal control requires clarification of business processes and establishment of checking systems. Processes must be understood so responsibilities and control points can be assigned, and checks must detect or prevent errors and misconduct alongside separation of duties and documented procedures.
Answer (d)
Why not others:
- computerization is neither required for nor sufficient to establish internal control
- improved business efficiency is a possible benefit, not a control mechanism
- options using either of those items omit a necessary control foundation
Key rule: Internal control combines clear processes, assigned responsibilities, separation of incompatible duties, documented rules, and independent or embedded checks.
AI-generated — may contain errors
The original exam layout is preserved in the image so diagrams, formulas, tables, and code remain accurate.
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official IP past-paper collection or Report an issue.