Of the following statements about internal controls, which one is least likely to be correct?
A) No one person should be responsible for the custodial responsibility and the recording responsibility for an asset.
B) Transactions must be properly authorized before such transactions are processed.
C) Because of the cost-benefit relationship, a client may apply controls on a test basis.
D) Control procedures reasonably ensure that collusion among employees cannot occur.

Question

Quizplus · Accepted Answer

Control procedures cannot entirely prevent collusion among employees, but they can mitigate the risk of collusion. Therefore, it is least likely to be correct that control procedures "reasonably ensure" that collusion among employees cannot occur.

Of the Following Statements About Internal Controls, Which One Is