Internal controls must provide a __________assurance that they achieve their objectives.
A) perfect.
B) reasonable.
C) guaranteed.
D) limited.

Question

Quizplus · Accepted Answer

Internal controls cannot provide perfect assurance, as there is always some risk of error or fraud. Guaranteed assurance is also not possible, as there is always a possibility of unforeseen circumstances. Limited assurance may also not be sufficient, as most organizations require reasonable assurance that their objectives are being achieved. Therefore, the best option is reasonable assurance, which means that internal controls are effective in achieving their objectives to a reasonable level.

Internal Controls Must Provide a __________Assurance That They Achieve Their