Internal controls are necessary in all businesses because …
A)business processes do not always go to plan
B)employees are basically corrupt
C)financial statements only contain assertions
D)external auditors insist on them

Question

Quizplus · Accepted Answer

Internal controls are necessary in all businesses because business processes do not always go to plan. These controls provide reasonable assurance that business objectives will be achieved even when unforeseeable events occur. The other options are incorrect because not all employees are corrupt, financial statements contain more than assertions, and although external auditors may require internal controls, they are not the sole reason for their existence.

Internal Controls Are Necessary in All Businesses Because …