Which of the following statements is correct regarding internal control? 1. A well-designed and operated internal control
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Question:
Which of the following statements is correct regarding internal control?
1. A well-designed and operated internal control environment should detect collusion perpetrated by two people.
2. A well-designed internal control environment ensures the achievement of an entity's control objectives.
3. Internal control is a necessary business function and should be designed and operated to detect all errors and fraud.
4. An inherent limitation to internal control is the fact that controls can be circumvented by management override.
Related Book For
Auditing and Assurance Services
ISBN: 978-0077862343
6th edition
Authors: Timothy Louwers, Robert Ramsay, David Sinason, Jerry Straws
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