Which of the following is NOT a principle of internal control?
A)Audits should always be conducted by employees internal to the organization.
B)Responsibility for related transactions should be divided.
C)Responsibilities should be clearly established.
D)Assets should be insured and employees bonded.
E)Adequate records should be maintained.

Question

Quizplus · Accepted Answer

Audits should be conducted by an independent party, external to the organization, to ensure objectivity and impartiality. This provides a check and balance system to ensure that the internal controls are effective and accurate. All other choices are principles of internal control.

Which of the Following Is NOT a Principle of Internal