Internal controls cannot:
A)Prevent anomalous and undesirable occurrences
B)Detect anomalous and undesirable occurrences
C)Correct anomalous and undesirable occurrences
D)Reverse the effects brought about by anomalous and undesirable occurrences

Question

Quizplus · Accepted Answer

Internal controls are preventive and detective measures put in place to reduce the risk of anomalous and undesirable occurrences. While they may detect and correct these occurrences, they cannot reverse their effects. For example, if funds have been misappropriated, internal controls can help detect and correct the misappropriation, but they cannot reverse the effects of the lost funds.

Internal Controls Cannot