Managers place a high priority on internal control systems because the systems assist managers in the:
A)Planning of operations.
B)Monitoring of employee performance.
C)Prevention of avoidable losses.
D)Monitoring of company performance.
E)All of these answers are correct.

Question

Quizplus · Accepted Answer

Internal control systems assist managers in all of these areas, making all of the answer choices correct. Planning of operations can be improved through internal controls that provide accurate financial and operational data, and help identify potential risks and challenges. Internal controls also enable managers to monitor employee performance and ensure adherence to policies and procedures. By preventing avoidable losses, such as fraud, theft, or error, internal controls protect the company's assets and safeguard its reputation. Finally, monitoring of company performance is made possible through the use of internal controls to measure and report on financial and non-financial metrics.

Managers Place a High Priority on Internal Control Systems Because