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 eliminate the risk of embezzlement completely, as there is always a possibility that someone can circumvent the controls or find an alternative way to commit fraud. Internal controls are designed to provide reasonable assurance that transactions are properly authorized and recorded, access to assets is restricted to authorized personnel only, and assets are verified periodically to ensure their existence and accuracy of the accounting records.

Internal Controls Are Not Designed to Provide Reasonable Assurance That