An internal control system consists of all of the following policies and procedures except those necessary to ensure
A)the safeguarding of an entity's assets.
B)that cash on hand and on deposit in checking accounts is beyond the minimal amount for ongoing operations.
C)the reliability of an entity's accounting records.
D)the accomplishment of an entity's overall objectives.

Question

Quizplus · Accepted Answer

While having cash on hand and in bank accounts is important for ongoing operations, it is not a key element of an internal control system. The other options (safeguarding assets, reliability of accounting records, and accomplishing overall objectives) are all essential components of an internal control system.

An Internal Control System Consists of All of the Following