A properly designed internal control system:
A) Requires the use of non-computerized systems.
B) Lowers the company's risk of loss.
C) Eliminates the need for an audit.
D) Insures profitable operations.
E) Is not necessary if the company uses a computerized system.

Question

Quizplus · Accepted Answer

A properly designed internal control system would help to lower the company's risk of loss by providing measures to prevent or detect errors or fraud. However, it does not eliminate the need for an audit, and it can be designed to work with computerized systems. It is not necessary to use non-computerized systems. It also does not insure profitable operations as profitability depends on various factors such as market conditions, competition, and management decisions.

A Properly Designed Internal Control System