Which of the following is TRUE of internal control?
A) A company's outside auditor is responsible for the company's internal control system.
B) One of the major purposes of internal control is to ensure accurate, reliable accounting records.
C) Internal control procedures tend to diminish the importance of operational efficiency.
D) Internal controls are only necessary for large businesses.

Question

Quizplus · Accepted Answer

One of the major purposes of internal control is to ensure accurate, reliable accounting records. Internal control helps to prevent errors and fraud, and ensures that financial information is complete and accurate. The company's outside auditor is responsible for assessing the effectiveness of the internal control system, but the responsibility for establishing and maintaining the system lies with management. Internal control procedures should not diminish operational efficiency, but rather should enhance it by promoting effective and efficient operations. Internal controls are necessary for businesses of all sizes, not just large ones.

Which of the Following Is TRUE of Internal Control