The internal control in small business is highly dependent on the:
A)separation of functional responsibilities.
B)complexity of the client's internal controls.
C)owner-manager's competence, as well as his/her ethics and integrity.
D)bonding of employees.

Question

Quizplus · Accepted Answer

In a small business, the owner-manager is often responsible for multiple functions and has a significant role in establishing and monitoring internal controls. Therefore, the competence, ethics, and integrity of the owner-manager are crucial to the success of internal controls in a small business. Separation of functional responsibilities and employee bonding are also important, but they are not as critical as the owner-manager's role. Complexity of internal controls may not be relevant in a small business, as the internal controls should be tailored to the business's size and needs.

The Internal Control in Small Business Is Highly Dependent on The