Internal controls are not designed to provide reasonable assurance that:
A) all frauds will be detected.
B) transactions are executed in accordance with management's authorization.
C) access to assets is permitted only in accordance with management's authorization.
D) company personnel comply with applicable rules and regulations.

Question

Quizplus · Accepted Answer

While internal controls can help detect and prevent fraud, they cannot provide absolute assurance that all frauds will be detected. Frauds often involve intentional deception and concealment, which can be difficult to detect even with effective internal controls in place.

Internal Controls Are Not Designed to Provide Reasonable Assurance That