Internal control occurs when __________.
A)Motivated individuals and groups are directly supervised.
B)Computers are used to monitor performance inside the organization.
C)Motivated individuals and groups exercise self-discipline in fulfilling job requirements.
D)Managers take responsibility for the activities in their own departments.
E)Motivated managers defend the organization against outside competitive attacks.

Question

Quizplus · Accepted Answer

Internal control occurs when motivated individuals and groups exercise self-discipline in fulfilling job requirements. It is a process that provides reasonable assurance regarding the reliability of financial reporting, compliance with applicable laws and regulations, and the effectiveness and efficiency of operations. While the other options may contribute to internal control, the most essential factor is employees' willingness to follow policies and procedures and to act responsibly in carrying out their job duties.

Internal Control Occurs When __________