A good system of internal control:
A)Promotes operational efficiencies.
B)Eliminates the need for an audit.
C)Encourages adherence to prescribed managerial policies.
D)Both encourages adherence to prescribed managerial policies and promotes operational efficiencies.
E)All of these answers are correct.

Question

Quizplus · Accepted Answer

A good system of internal control should promote operational efficiencies, such as reducing errors and duplications, while also encouraging adherence to managerial policies and procedures. It cannot eliminate the need for an audit, which serves to provide an independent evaluation of the effectiveness of the internal control system. Therefore, options A, B, and E are not entirely correct.

A Good System of Internal Control