Internal controls:
A)Have four broad purposes.
B)Are key elements of the third step in a financial statement audit.
C)Both A and B.
D)Neither A nor B.

Question

Quizplus · Accepted Answer

Internal controls have four broad purposes (to safeguard assets, maintain accurate financial records, promote operational efficiency and effectiveness, and ensure compliance with legal and regulatory requirements), and they are a key element of the third step in a financial statement audit (which is testing internal controls).

Internal Controls