Internal controls are ________.
A)laws and regulations imposed by the IRS and SEC to ensure the accuracy of financial statements
B)accounting procedures required by the FASB to ensure the accuracy and reliability of firms' accounting records
C)policies and procedures the managers of a firm use to protect a firm's assets and the accuracy of its accounting records
D)rules required by creditors to ensure repayment of liabilities

Question

Quizplus · Accepted Answer

Internal controls are policies and procedures put in place by managers to protect a firm's assets and ensure the accuracy of accounting records. While laws and regulations may impact internal controls, they are not the same as internal controls. Accounting procedures required by the FASB and rules required by creditors are also not the same as internal controls.

Internal Controls Are ________