Who has the primary responsibility for establishing and maintaining good internal controls?
A)Primary responsibility for controls belongs to internal auditors.They are the ones who create the controls and investigate potential violations of the controls.
B)Primary responsibility rests with management.Management both conveys acceptable culture and has the final say in how fraud cases are treated.
C)Primary responsibility lies with employees.They are the ones most likely to fully understand the system on a day-to-day basis and know where controls should be put in place.
D)Primary responsibility is not attributable to one person or group of people within an organization.Each member of an organization must consider himself or herself personally responsible for the organization's control environment.

Question

Quizplus · Accepted Answer

While all members of an organization are responsible for maintaining internal controls, primary responsibility rests with management. Management sets the tone for the organization and is responsible for creating and enforcing policies and procedures that establish and maintain effective internal controls. Internal auditors play a role in monitoring and evaluating the effectiveness of internal controls, but they do not have primary responsibility for establishing and maintaining them. Employees may provide input on where controls should be placed, but they are not solely responsible for establishing and maintaining them. Ultimately, every member of an organization must take personal responsibility for maintaining effective internal controls, but management has the primary responsibility for ensuring that they are in place and functioning properly.

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