Of the following statements about internal control,which one is not valid? A)No one person should be responsible for the custodial responsibility and the recording responsibility for an asset. B)Transactions must be properly authorized before such transactions are processed. C)Because of the cost/benefit relationship,a client may apply control procedures on a test basis. D)Control activities ensure all fraud will be eliminated.

Question

Quizplus · Accepted Answer

Control activities cannot guarantee that all fraud will be eliminated. While they may deter, detect, or prevent fraud to some extent, there is always a risk that fraudulent activities may occur despite the control activities in place.

Of the Following Statements About Internal Control,which One Is not