Internal controls are not designed to provide reasonable assurance that
A) all frauds will be detected.
B) transactions are executed in accordance with management's authorization.
C) the company's resources are used efficiently and effectively.
D) company personnel comply with applicable rules and regulations.

Question

Quizplus · Accepted Answer

Internal controls, while important, cannot guarantee that all frauds will be detected. Fraudsters often find ways to circumvent controls and detection. However, internal controls can still provide reasonable assurance that fraud risks are minimized and that transactions are executed in accordance with management's authorization, the company's resources are used efficiently and effectively, and company personnel comply with applicable rules and regulations.

Internal Controls Are Not Designed to Provide Reasonable Assurance That