Effective internal control provides ________ assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes.
A) little
B) adequate
C) total
D) reasonable

Question

Quizplus · Accepted Answer

Effective internal control can provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes. However, total assurance is not possible, and there is always some level of risk involved in financial reporting. Therefore, option A (little) is not correct, and option B (adequate) is not a strong enough assurance level.

Effective Internal Control Provides ________ Assurance Regarding the Reliability of Financial