A plan of organization and a system of procedures, implemented by company management and the board of directors, is called:
A)the budget.
B)the audit.
C)internal control.
D)the Sarbanes -Oxley Act.

Question

Quizplus · Accepted Answer

Internal control is a plan of organization and procedures implemented by management and the board of directors to ensure the achievement of a company's objectives. It includes the policies, procedures, and processes that are put in place to provide reasonable assurance that the company's assets are safeguarded, its financial information is accurate, and its operations are conducted in accordance with applicable laws and regulations. The other options - budget, audit, and Sarbanes-Oxley Act - are related to specific activities or regulations, but they are not comprehensive systems of organization and procedures.

A Plan of Organization and a System of Procedures, Implemented