Consider the following statements about budget administration:
I. The budgeting process is a very formal process in all organizations regardless of an organization's size.
II. The budget manual is prepared to communicate budget procedures and deadlines to employees throughout an organization.
III. Effective internal control procedures require that the budget director be an individual other than the controller.
Which of the above statements is (are) true?

Question

Quizplus · Accepted Answer

II only. The budget manual indeed serves the purpose of communicating budget procedures and deadlines throughout an organization, making statement II true. Statement I is false because the formality of the budgeting process can vary significantly depending on the size and culture of the organization. Statement III is also false as effective internal control procedures do not necessarily require the budget director to be a different individual from the controller; roles and responsibilities depend on the organization's structure and policies.

Consider the Following Statements About Budget Administration