The principles of internal control do not include:

Question

Quizplus · Accepted Answer

The principles of internal control refer to measures put in place by an organization to ensure that its objectives are achieved efficiently and effectively. Conducting external audits is not a principle of internal control, but rather an external assurance mechanism to assess the effectiveness of internal controls already in place. The other choices are all principles of internal control: preparation of written procedures helps ensure consistency and clarity of processes, restricted asset access reduces the risk of fraud or unauthorized transactions, segregation of duties reduces the risk of errors or fraud, and job rotation reduces the risk of fraud and helps with cross-training and knowledge transfer.

The Principles of Internal Control Do Not Include