The extent of internal control activities adopted by a company must be evaluated in terms of cost-benefit.

Question

Quizplus · Accepted Answer

Internal control activities come with a cost, such as hiring additional staff or implementing and maintaining technology systems. Therefore, it is important to evaluate the benefits of these activities against the cost involved. The cost of implementing control activities should not exceed the potential benefits that may be expected from them.

The Extent of Internal Control Activities Adopted by a Company