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Business English Exercises
 

Internal Controls

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Home > Teaching Business English > Business English Lessons, Advanced Level # 138
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Senior executives have long sought ways to better control the enterprises they run.

Correct answer: (b) sought

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Internal controls are put in place to keep the company on course toward profitability goals and achievement of its mission, and to minimize surprises along the way.

Correct answer: (d) place

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They enable management to deal with rapidly changing economic and competitive environments, shifting customer demands and priorities, and restructuring for future growth.

Correct answer: (a) enable

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501 Business English Exercises — Printable, photocopiable.
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Internal control is looked upon more and more as a solution to a variety of potential problems.

Correct answer: (d) upon

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This report defines and describes internal control to provide a standard against which business and other entities can assess their control systems and determine how to improve them.

Correct answer: (a) against

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Internal control is broadly defined as a process, effected by an entity's board of directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in several categories.

Correct answer: (c) effected

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The first category, effectiveness and efficiency of operations, addresses an entity's basic business objectives, including performance and profitability goals and safeguarding of resources.

Correct answer: (a) addresses

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The second, reliability of financial reporting, relates to the preparation of reliable published financial statements, including interim and condensed financial statements and selected financial data derived from such statements, such as earnings releases, reported publicly.

Correct answer: (d) derived

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The third, compliance with applicable laws and regulations, deals with complying with those laws and regulations to which the entity is subject.

Correct answer: (a) subject

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While internal control is a process, its effectiveness is a state or condition of the process at one or more points in time.

Correct answer: (a) in

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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
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