All of the following statements regarding internal control procedures are true except:
A) Internal control procedures are designed to ensure reliable financial reports.
B) Internal control procedures are designed to safeguards company assets.
C) Internal control procedures direct operations toward common goals.
D) Internal control procedures include methods to achieve compliance with laws and regulation.
E) Internal control procedures are bit affected by the cost-benefit principle.

Question

Quizplus · Accepted Answer

Internal control procedures are affected by the cost-benefit principle. The design and implementation of internal control procedures should weigh the costs of achieving control objectives against the benefits derived from the procedures.

All of the Following Statements Regarding Internal Control Procedures Are