Which one of the following statements regarding internal control is false?
A)It is not possible to design a system of internal controls that is foolproof.
B)A well-designed system of internal controls should be the goal of every organization whether for profit or not-for-profit.
C)Separation of duties is the easiest control activity to implement in small companies.
D)It is easiest to implement effective internal controls in large companies which are able to devote substantial resources to those systems.

Question

Quizplus · Accepted Answer

Separation of duties, a fundamental element of internal control intended to reduce the risk of fraud and error, is often challenging to implement in small companies due to limited staff. This makes it difficult to segregate responsibilities among different individuals, contrary to the assertion in option C.

Which One of the Following Statements Regarding Internal Control Is