Who has the primary responsibility for establishing and maintaining good internal controls?
A)Primary responsibility for controls belongs to internal auditors.They are the ones who create the controls and investigate potential violations of the controls.
B)Primary responsibility rests with management.Management both conveys acceptable culture and has the final say in how fraud cases are treated.
C)Primary responsibility lies with employees.They are the ones most likely to witness violations and are responsible to watch for those violations.
D)Primary responsibility is not attributable to one person or group of people within an organization.Each member of an organization must consider himself or herself personally responsible for the organization's control environment.

Question

Quizplus · Accepted Answer

The primary responsibility for establishing and maintaining good internal controls lies with management. Internal auditors may assist in the process, but ultimately it is up to management to set the tone for acceptable behavior and ensure that controls are in place and functioning effectively. Employees also have a role in maintaining internal controls, but they are not solely responsible for their design or implementation. The entire organization should have a culture of accountability and responsibility for maintaining and improving the control environment.

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