Which of the following is NOT true of a sound system of internal control?
A) Implementation of controls involves costs.
B) A sound system of internal control is the responsibility of management.
C) All errors and irregularities should be eliminated.
D) A sound system of internal control is fundamental to the production of reliable financial reports.

Question

Quizplus · Accepted Answer

While a sound system of internal control aims to reduce the risk of errors and irregularities, it is impossible to eliminate them completely. Therefore, option C is not true.

Which of the Following Is NOT True of a Sound