When a company designs and implements internal controls, the cost of the controls is not a valid consideration.

Question

Quizplus · Accepted Answer

The cost of internal controls is a valid consideration that companies must take into account when designing and implementing them. This is because the cost of the internal controls must be proportionate to the level of risk that the company is trying to mitigate. Furthermore, if the cost of internal controls exceeds the potential benefits, it may not be feasible for the company to implement them.

When a Company Designs and Implements Internal Controls, the Cost