The quality of an organization's internal controls affect which of the following?
A) The reliability of financial data.
B) The ability of management to make good decisions.
C) The ability to remain in business.
D) All of the above.

Question

Quizplus · Accepted Answer

The quality of an organization's internal controls affects all of the given options. The reliability of financial data depends on the accuracy and completeness of the data recorded, which is ensured by effective internal controls. The ability of management to make good decisions also depends on reliable financial data as well as effective risk management and compliance controls provided by internal controls. Moreover, the ability to remain in business is impacted by a range of factors, including financial stability, timely and accurate financial reporting, and compliance with regulatory requirements, all of which depend on the quality of internal controls.

The Quality of an Organization's Internal Controls Affect Which of the Following