The only reason a company needs to create an internal control system is to deter intentional fraudulent acts.

Question

Quizplus · Accepted Answer

While deterrence of fraudulent acts is one important aspect of an internal control system, it is not the only reason to create one. Internal control systems also ensure compliance with laws and regulations, promote efficient and effective operations, safeguard assets, and prevent errors and mistakes.

The Only Reason a Company Needs to Create an Internal