Internal control does not consist of policies and procedures that
A) protect assets from misuse
B) ensure employees and managers comply with laws and regulations
C) guarantee the company will earn a profit
D) ensure that business information is accurate

Question

Quizplus · Accepted Answer

Internal control is a process designed to provide reasonable assurance regarding the achievement of objectives relating to operations, reporting, and compliance. While internal controls can help a company earn a profit indirectly, it is not their primary purpose. Instead, the main focus is on safeguarding assets, ensuring compliance with laws and regulations, and ensuring the accuracy of business information. Therefore, option C is not a correct statement about internal control.

Internal Control Does Not Consist of Policies and Procedures That