A good system of internal control:
A)Urges adherence to prescribed managerial policies.
B)Insures profitable operations.
C)Eliminates the need for an audit.
D)Requires the use of a manual accounting system.
E)Is not necessary if the company uses a computerized system.

Question

Quizplus · Accepted Answer

A good system of internal control includes policies and procedures that urge adherence to prescribed managerial policies. This helps to ensure that the company operates in a consistent and reliable manner and that risks are minimized. While internal control does help to insure profitable operations, it does not eliminate the need for an audit. Additionally, a manual accounting system is not necessarily required for a good system of internal control, nor is a computerized system a substitute for internal control.

A Good System of Internal Control