Which of the following statement regarding internal control is correct?
A)Internal controls provide a degree of assurance that the organisation and its systems are running normally.
B)Internal controls can prevent and detect anomalous and undesirable occurrences,but they cannot reverse the effects caused by such occurrences.
C)Internal controls do not concern about natural disasters and other catastrophic disruptions.
D)Internal controls are only implemented in the most important functions of an organisation.

Question

Quizplus · Accepted Answer

Internal controls provide assurance that an organization and its systems are operating as intended, which helps to prevent or detect and correct issues that arise.

Answer: B
 Internal controls are designed to prevent and detect issues such as fraud, errors, or other undesirable occurrences. However, if such occurrence happen, internal controls may not be able to reverse the negative effects.

Answer: C
 Internal controls can include plans for contingencies such as natural disasters or other catastrophic disruptions.

Answer: None of the choices 
 Internal controls should be implemented throughout an organization in all functions, not just in the most important ones.

Which of the Following Statement Regarding Internal Control Is Correct