Which one of the following statements regarding internal control is true?
A) Companies can design a system of internal control that is foolproof.
B) A well-designed internal control system is a luxury that few companies can afford.
C) It is easier to implement an effective internal control system in a small company because of the limited number of employees.
D) Large companies are able to devote a substantial amount of resources to internal control systems because these companies have the assets to justify the cost.

Question

Quizplus · Accepted Answer

Large companies have the resources to devote to designing and implementing effective internal control systems, while smaller companies may lack the resources to do so. However, no system of internal control is foolproof, as human error and intentional circumvention can still occur.

Which One of the Following Statements Regarding Internal Control Is