A properly designed internal control system:
A) Lowers the company's risk of loss.
B) Insures profitable operations.
C) Eliminates the need for an audit.
D) Requires the use of non-computerized systems.
E) Is not necessary if the company uses a computerized system.

Question

Quizplus · Accepted Answer

A properly designed internal control system helps to lower the company's risk of loss by preventing or detecting errors and fraud. However, it does not insure profitable operations, eliminate the need for an audit, or require the use of non-computerized systems. A company can still have an effective internal control system with the use of computerized systems.

A Properly Designed Internal Control System