Internal controls are the primary means by which fraud, as well as unintentional financial statement errors, are prevented.

Question

Quizplus · Accepted Answer

Internal controls are designed to mitigate the risk of fraud and unintentional errors in financial reporting. They serve as an organization's first line of defense against errors and dishonest behavior, and are essential for ensuring the accuracy and integrity of financial reporting. Without effective internal controls, an organization is more vulnerable to financial losses, regulatory violations, and reputational damage, among other risks.

Internal Controls Are the Primary Means by Which Fraud, as Well