Internal controls are not designed to provide reasonable assurance that:
A)transactions are executed in accordance with management's authorization.
B)embezzlement will be eliminated.
C)access to assets is permitted only in accordance with management's authorization.
D)amounts recorded for assets are compared with the actual existing assets at reasonable intervals.

Question

Quizplus · Accepted Answer

Internal controls cannot completely eliminate the risk of embezzlement or fraud. Rather, they are designed to provide reasonable assurance that transactions are executed in accordance with management's authorization and that access to assets is permitted only in accordance with that same authorization. Additionally, internal controls may include periodic comparisons of recorded asset amounts with existing assets to detect discrepancies or errors, but this is not the primary purpose of internal controls.

Internal Controls Are Not Designed to Provide Reasonable Assurance That