Which of the following describes the internal control component "information system"?
A) Internal auditors monitor company controls to safeguard assets and external auditors monitor the controls to ensure that the accounting records are accurate.
B) Control procedures are designed to ensure that the business's goals are achieved.
C) The information system is critical because the owner of a business needs accurate information to keep track of assets and measure profits and losses.
D) The information system is the "tone at the top" of the business.

Question

Quizplus · Accepted Answer

The information system component of internal control refers to the processes and systems in place for recording, processing, summarizing, and reporting an organization's financial data. Accurate information is essential for tracking assets and measuring profits and losses, which is why option C is correct.

Which of the Following Describes the Internal Control Component "Information