Which of the following statements about internal control is true?
A)Internal auditors ensure that the employees follow company policies.
B)The treasurer and controller have the same responsibilities.
C)External auditors are employees of the company.
D)The control procedures are known as the "tone at the top."

Question

Quizplus · Accepted Answer

Internal auditors are responsible for evaluating and improving the effectiveness of internal controls, but they do not ensure that employees follow policies. The treasurer and controller have different responsibilities within an organization. External auditors are independent professionals hired by the company to review financial records and ensure they are accurate. The phrase "tone at the top" refers to the culture and values set by senior management that influence the behavior of lower level employees.

Which of the Following Statements About Internal Control Is True