A company's internal control system:
A) Eliminates the need for audits.
B) Eliminates the need for managers' certification of controls.
C) Monitors company and employee performance.
D) Eliminates the company's risk of loss.
E) Eliminates human error.

Question

Quizplus · Accepted Answer

A company's internal control system is designed to monitor company and employee performance in order to ensure that operations are conducted in an effective and efficient manner, and that financial reporting is accurate and reliable. While internal control systems can help reduce the risk of loss and minimize human error, they are not foolproof and do not eliminate the need for audits or managers' certification of controls.

A Company's Internal Control System