What include, but are not limited to the plan of organization and the procedures and records that are concerned with the decision processes leading to management's authorization of transactions?

The correct answer is A. Administrative controls. Administrative controls (A) is correct because this term specifically refers to the plan of organization, procedures, and records concerned with decision-making processes that lead to management's authorization of transactions - it's the "who decides and approves" layer of…

Question

What include, but are not limited to the plan of organization and the procedures and records that are concerned with the decision processes leading to management’s authorization of transactions?

Options

AAdministrative controls
BGlobalization
CAccurate transactions
DControl environment

How the community answered

(24 responses)

A
79% (19)
B
4% (1)
C
13% (3)
D
4% (1)

Explanation

Administrative controls (A) is correct because this term specifically refers to the plan of organization, procedures, and records concerned with decision-making processes that lead to management's authorization of transactions - it's the "who decides and approves" layer of internal control, as defined in auditing standards.

Globalization (B) is entirely unrelated - it refers to international economic integration, not internal control structures. Accurate transactions (C) describes an outcome or goal of controls, not a control category itself. Control environment (D) is a broader concept (the overall culture and tone set by management around controls), whereas administrative controls are a specific subset focused on authorization and decision processes.

Memory tip: Think "Administrative = Authorization" - administrative controls govern who has the authority to approve actions, linking the "admin" in administrative to management's decision-making role.

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