Before any internal control procedure is initiated,which of the following questions must be primarily addressed by a company?
A) Will this put an end to theft?
B) Is this the best security money can buy?
C) How much benefit will be derived from the cost of the procedure?
D) Will this prevent accounting errors?

Question

Quizplus · Accepted Answer

The primary question that a company must address before initiating any internal control procedure is the cost versus the benefit of the procedure. The company needs to evaluate if the benefits derived from the procedure outweigh its cost. The other options (A, B, and D) are also important considerations, but they are not the primary question that must be addressed.

Before Any Internal Control Procedure Is Initiated,which of the Following