The best system of internal controls can provide complete assurance that the financial statements are fairly presented.

Question

Quizplus · Accepted Answer

No internal control system can provide complete assurance that financial statements are fairly presented. Internal controls are designed to reduce the risk of errors or fraud but cannot eliminate it entirely. Additionally, internal controls are dependent on human interpretation and execution, which can be flawed. Therefore, there is always a residual risk of material misstatement in the financial statements.

The Best System of Internal Controls Can Provide Complete Assurance