Internal control systems:
A)are the responsibility of the external auditor
B)include anti-fraud measures
C)are designed to allow financial misrepresentation
D)require that one person perform all aspects of a task
E)all of the above

Question

Quizplus · Accepted Answer

Internal control systems include anti-fraud measures as a key element to prevent and detect fraud within an organization. The other options are incorrect, as they go against the purpose of internal control systems. The external auditor's responsibility is to evaluate the effectiveness of the internal control system, not design it. Internal control systems should not be designed to allow financial misrepresentation, and segregation of duties is a key aspect of a strong internal control system.

Internal Control Systems