The importance of internal control to management and auditors has been recognised for many years. Which of the following is likely to be cited as a major factor contributing to this importance?
A) The operations of the business entity have become so unwieldy that management must rely on the chief financial officer to effectively control operations.
B) Checks and reviews protect against employee collusion and reduce the chance of employee fraud.
C) Internal control procedures must be utilised to maintain accurate accounting records.
D) It is impractical for auditors to audit most companies within economic fee limitations without relying on the client's system of internal controls.

Question

Quizplus · Accepted Answer

It is impractical for auditors to audit most companies within economic fee limitations without relying on the client's system of internal controls.

The Importance of Internal Control to Management and Auditors Has