Which of the following is TRUE of internal control?
A)Internal controls are only necessary for large businesses.
B)A company's outside auditor is responsible for the company's internal control system.
C)Internal control procedures tend to diminish the importance of operational efficiency.
D)One of the major purposes of internal control is to ensure accurate,reliable accounting records.

Question

Quizplus · Accepted Answer

Internal control is necessary for all businesses, not just large ones. The company's management team is responsible for establishing and maintaining effective internal controls, not the outside auditor. Internal controls are designed to ensure the accuracy and reliability of accounting records, as well as to promote operational efficiency.

Which of the Following Is TRUE of Internal Control