Which of the following is correct regarding management's documentation of internal controls?
A) inadequate documentation is not a control deficiency
B) documentation needs to focus on interim controls
C) documentation needs to have some focus on controls designed to detect fraud
D) documentation should only focus on system design

Question

Quizplus · Accepted Answer

Management's documentation of internal controls should have some focus on controls designed to detect fraud, as this is an important aspect of internal controls. Inadequate documentation can be a control deficiency, and documentation should not only focus on system design but also on the effectiveness of controls in operation. Interim controls are important but should not be the sole focus of documentation.

Which of the Following Is Correct Regarding Management's Documentation of Internal