Internal controls are the policies and procedures managers of a firm use to protect the firm's assets and to ensure the accuracy and reliability of the firm's accounting records.

Question

Quizplus · Accepted Answer

Internal controls are indeed designed to protect a firm's assets and ensure the accuracy and reliability of its financial reporting. This helps prevent fraud, errors, and other types of financial misstatements that could harm the business or its stakeholders. Examples of internal controls include procedures for handling cash, segregating duties, conducting regular audits or inventory checks, and implementing software or other automated systems to monitor financial transactions.

Internal Controls Are the Policies and Procedures Managers of a Firm