The use of internal controls provides guaranteed protection against losses due to operating activities.

Question

Quizplus · Accepted Answer

While internal controls can help to minimize the risk of losses due to operating activities, they do not provide a guaranteed protection against such losses. No system of controls can completely eliminate the possibility of errors, mistakes, or fraud. However, well-designed controls can help to detect and prevent such issues, and provide reasonable assurance that operations are running effectively and efficiently.

The Use of Internal Controls Provides Guaranteed Protection Against Losses