Concerning internal control, which one of the following statements is correct? Explain. a. Broadly speaking, an...

Concerning internal control, which one of the following statements is correct? Explain. a. Broadly speaking, an internal control structure is only necessary in large organizations. b. The purposes of internal control are to check the accuracy of accounting data, safeguard assets against theft, promote efficiency of operations, and ensure that management's policies are being followed. c. Once an internal control structure has been established, it should be effective as long as the formal organization remains unchanged. d. An example of internal control is having one employee count the day's cash receipts and compare the total with the total of the cash register tapes.

EXPLAIN WHY THE ANSWER IS TRUE

Expert Solution

Question

Answer : Concerning internal control, which one of the following statements is correct?

Explain.

Correct statement is b. The purposes of internal control are to check the accuracy of accounting data, safeguard assets against theft, promote efficiency of operations, and ensure that management's policies are being followed.

Explanation for the answer :

the Internal control is the process effected by the management and other person, designed to provide reasonable assurance for the achiveving the objective in the manner that

a. reliability of fniancial statement

b.effecivness and efficiency of operations

c and adherance of the applicable law and regualtion to the organisation.

the explained details are matched with the para of (b) given in the question

Other statements are not correct

a. Broadly speaking, an internal control structure is only necessary in large organizations.

c. Once an internal control structure has been established, it should be effective as long as the formal organization remains unchanged.

d. An example of internal control is having one employee count the day's cash receipts and compare the total with the total of the cash register tapes.

ekkarill92 answered 1 year ago

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