A highly effective internal control should not be implemented if the cost is greater than the benefit.

Question

Quizplus · Accepted Answer

This statement is true. Internal controls are put in place to safeguard assets, ensure accurate financial reporting, and prevent fraud. However, the cost of implementing the control should not outweigh the benefits it provides. Organizations need to assess the potential risks and benefits of the control before adoption. If the cost of implementing an internal control system is higher than the potential benefits, it wouldn't make sense to implement it.

A Highly Effective Internal Control Should Not Be Implemented If