Well-designed internal controls do not promote:
A) Legal compliance and file integrity.
B) Opportunities for defalcation.
C) Protection against embezzlement.
D) Audit trail support.

Question

Quizplus · Accepted Answer

Well-designed internal controls are meant to prevent, detect, and correct errors and irregularities, including opportunities for defalcation or fraud. Therefore, option B is not promoted by internal controls, as it refers to the possibility of stealing or misappropriating assets. The other options are all positive outcomes that are expected from effective internal controls.

Well-Designed Internal Controls Do Not Promote