What is the most important aspect of internal control?
A) The personnel
B) The board and audit committee participation
C) A controlled system
D) All of the above are equally important aspects of internal control

Question

Quizplus · Accepted Answer

A: A is correct.
B: B is incorrect because the board delegates responsibility of internal controls to management. Of course, the board needs to be strong and be involved in controls, but the board and audit committee participation is not the most important aspect of internal controls.
C: C is incorrect because if employees are competent and trustworthy, other controls can be absent, and reliable transactions will still result. Honest people are able to perform at a high level, even when there are few other controls to support them. Dishonest people can reduce to shambles a system with numerous controls in place.
D: D is incorrect because the personnel are the most important aspect of internal control.

What Is the Most Important Aspect of Internal Control