Small companies cannot have internal controls since they do not have enough employees to segregate duties.

Question

Quizplus · Accepted Answer

Regardless of the size of the company, it is important to have internal controls to safeguard assets, ensure accuracy of financial statements, and prevent fraud. Small companies can still implement internal controls, even if they have limited staff. This may involve cross-training employees, implementing oversight procedures, or using technology to automate certain functions.

Small Companies Cannot Have Internal Controls Since They Do Not