Which of the following statements about internal control is TRUE?
A) Internal auditors ensure that the employees follow company policies.
B) The treasurer and controller have the same responsibilities.
C) External auditors are employees of the company they audit.
D) The internal control procedures are known as the "tone at the top."

Question

Quizplus · Accepted Answer

Internal auditors are responsible for ensuring that employees follow company policies as part of their duties in evaluating and improving the effectiveness of internal control systems. Choice B is incorrect because the treasurer and controller have different responsibilities. Choice C is incorrect because external auditors are not employees of the company they audit but are independent third-party professionals. Choice D is incorrect because the "tone at the top" refers to the ethical and cultural values promoted by senior management to shape the behavior and mindset of employees regarding internal controls rather than the control procedures themselves.

Which of the Following Statements About Internal Control Is TRUE