Which of the following statements is not true regarding internal control procedures?
A) Internal control procedures include methods to achieve compliance with laws and regulations.
B) Internal control procedures direct operations toward common goals.
C) Internal control procedures are designed to safeguard company assets.
D) Internal control procedures are not affected by the cost-benefit principle.
E) Internal control procedures are designed to ensure reliable financial reports.

Question

Quizplus · Accepted Answer

The statement "Internal control procedures are not affected by the cost-benefit principle" is not true. Internal control procedures are always evaluated with respect to the cost-benefit principle, which means that the cost of implementing internal controls should not outweigh the benefits of having those controls in place. Companies need to balance the costs and benefits of implementing internal control procedures.

Which of the Following Statements Is Not True Regarding Internal