A company should develop a system of internal controls that provides absolute assurance that assets are protected and financial statements are fairly presented.

Question

Quizplus · Accepted Answer

While internal controls are essential to protect assets and ensure accurate financial reporting, no system can provide absolute assurance. There is always the possibility of errors or fraud, intentional or unintentional. The goal is to design and implement a strong system of internal controls that reduces the risk of such concerns to an acceptable level.

A Company Should Develop a System of Internal Controls That