If a company hires honest employees and its top management acts with integrity, no internal control procedures will be necessary.

Question

Quizplus · Accepted Answer

Internal control procedures are necessary regardless of the honesty and integrity of employees and top management. These procedures help to prevent and detect errors, fraud, and other irregularities that may occur even with honest employees and management. Internal controls also ensure that financial statements are reliable and accurate.

If a Company Hires Honest Employees and Its Top Management