Which of the following is NOT a design feature of effective internal controls?
A)Allow greater reliance by investors on reported financial statements.
B)Prevent fraudulent or errant financial reporting.
C)Ensure the company's price advantage over competitors.

Question

Quizplus · Accepted Answer

Ensuring the company's price advantage over competitors is not a design feature of effective internal controls. The purpose of internal controls is to ensure the accuracy, reliability, and completeness of financial reporting, and to prevent fraud and errors. Thus, choice C is not relevant to internal controls. On the other hand, choices A and B are essential features of effective internal controls. By ensuring that financial statements are reliable and free from errors, investors can rely on them to make informed decisions. Similarly, by preventing fraudulent or errant financial reporting, internal controls protect the company's assets and reputation.

Which of the Following Is NOT a Design Feature of Effective