PRL Corporation's internal control plan includes five items: (i) conducting ongoing evaluations of internal control during the normal course of operations, (ii) hiring accountants who understand the importance of strong internal control, (iii) including a segment in new employee orientation on the importance of strong internal control, (iv) periodic employee surveys that identify new issues that require internal controls, (v) a quarterly newsletter explaining elements of the internal control plan. Based on those five items alone, which element of PRL's internal control plan is weakest?
A)Risk / control matrix
B)Control activities
C)Information and communication
D)Monitoring

Question

Quizplus · Accepted Answer

The weakest element is "Control activities" because the listed items focus more on evaluation, communication, and awareness rather than specific control activities that directly prevent or detect errors and fraud.

PRL Corporation's Internal Control Plan Includes Five Items: (I) Conducting