The concept of ____ recognizes that managers must use their judgment to ensure that the cost of control does not exceed the system's benefits or the risks involved.
A) internal control
B) reasonable assurance
C) separation of duties
D) risk assessment

Question

Quizplus · Accepted Answer

The concept of reasonable assurance recognizes that while internal control is necessary, managers must use their judgment to ensure that the cost of control does not exceed the system's benefits or the risks involved. This involves balancing the cost of implementing and maintaining the control system against the risk of errors, fraud, or other problems that could occur without the controls in place. Separation of duties and risk assessment are both important components of internal control, but they do not specifically address the issue of balancing costs and benefits.

The Concept of ____ Recognizes That Managers Must Use Their