Who is responsible for establishing a private company's internal control?
A) senior management
B) internal auditors
C) FASB
D) audit committee

Question

Quizplus · Accepted Answer

Senior management is ultimately responsible for establishing and maintaining a private company's internal control. While internal auditors and audit committees play important roles in ensuring internal controls are effective, it is the responsibility of senior management to establish the framework and policies necessary for effective internal control. The Financial Accounting Standards Board (FASB) is responsible for setting accounting standards but not for establishing internal controls within a company.

Who Is Responsible for Establishing a Private Company's Internal Control