Capital or investment processes:
A)Are a regular and frequent event
B)Do not require established procedures or internal controls due to their infrequency
C)Require established procedures and internal controls even though they are considered infrequent events
D)Do not involve the company's own bond issues

Question

Quizplus · Accepted Answer

Capital or investment processes are infrequent events but require established procedures and internal controls to ensure the accuracy and reliability of financial reporting. These processes involve significant amounts of money and have a long-term impact on the company's financial position and performance. Therefore, companies need to have rigorous processes in place to evaluate investment opportunities, assess risks and returns, and allocate capital effectively. Internal controls are essential to prevent errors, fraud, and misstatement of financial information, particularly in complex transactions such as mergers and acquisitions, joint ventures, or capital raises.

Capital or Investment Processes