Control activities can be designed to provide reasonable assurance that all except which of the following will happen?
A) Transactions will be recorded to permit preparation of financial statements.
B) All risks will be eliminated.
C) Access to assets will be permitted only in accordance with management's authorization.
D) The recorded accountability for assets will be compared with the existing assets at periodic intervals.

Question

Quizplus · Accepted Answer

Control activities cannot completely eliminate all risks, but they can provide reasonable assurance that risks are mitigated and managed effectively. The other options listed are appropriate control activities that should be in place to provide reasonable assurance over the financial reporting process.

Control Activities Can Be Designed to Provide Reasonable Assurance That