The responsibility to establish, maintain and monitor internal controls is that of the entity's:

Question

Quizplus · Accepted Answer

Choice "C" is correct. The entity's management is responsible for establishing, maintaining, and monitoring the entity's internal controls, considering whether those controls are operating as intended, and modifying controls as conditions change. Choice "A" is incorrect. The accounting department is not responsible for establishing, maintaining, and monitoring internal controls. Choice "B" is incorrect. The internal auditors contribute to the monitoring of the entity's activities, but are not responsible for establishing or maintaining them. Choice "D" is incorrect. The (external) auditor is required to obtain sufficient knowledge of internal control, but is not responsible for establishing, maintaining, and/or monitoring internal control.

The Responsibility to Establish, Maintain and Monitor Internal Controls Is