All of the following statements regarding internal control procedures are true except:
A)Internal control procedures are designed to ensure reliable financial reports.
B)Internal control procedures are designed to safeguards company assets.
C)Internal control procedures direct operations toward common goals.
D)Internal control procedures include methods to achieve compliance with laws and regulation.
E)Internal control procedures are not affected by the cost-benefit principle.

Question

Quizplus · Accepted Answer

Internal control procedures are subject to the cost-benefit principle, meaning that the cost of implementing the control should not exceed the benefits gained from it. All other statements (A, B, C, and D) are true regarding internal control procedures.

All of the Following Statements Regarding Internal Control Procedures Are