Which of the following statements concerning internal controls is true?
A)Internal administrative controls are designed to limit the amount of funds spent on investments.
B)Strong internal controls provide reasonable assurance that the objectives of a company will be accomplished.
C)Internal accounting controls are limited to the policies and procedures used to protect the company from embezzlement.
D)The control procedure,separation of duties,prohibits the employment of a husband and wife or other closely related parties within the same company.

Question

Quizplus · Accepted Answer

Strong internal controls are designed to provide reasonable assurance that a company's objectives will be accomplished. Internal controls encompass a broad range of policies and procedures that are put in place to help a company achieve its goals. These controls include administrative controls, accounting controls, and others. The control procedure of separation of duties is not specifically designed to prohibit the employment of closely related parties within the same company, but rather to ensure that no single person has complete control over any given transaction or process.

Which of the Following Statements Concerning Internal Controls Is True