All of the following statements regarding internal control procedures are except:
A) Internal control procedures are designed to ensure reliable financial reports.
B) Internal control procedures are designed to safeguards company assets.
C) Internal control procedures direct operations toward common goals.
D) Internal control procedures include methods to achieve compliance with laws and regulation.
E) Internal control procedures are bit affected by the cost-benefit principle.

Question

Quizplus · Accepted Answer

Internal control procedures are indeed affected by the cost-benefit principle. This principle suggests that the benefits of controls should outweigh their costs. Therefore, statement E is incorrect as it suggests the opposite.

All of the Following Statements Regarding Internal Control Procedures Are