Asked by Dontillia
What statement is true about internal controls?
They are iron-clad and will stop all improper transactions.
They are used to ensure compliance with laws and regulations.
They are not able to safeguard assets.
They are not necessary for large businesses.
They are iron-clad and will stop all improper transactions.
They are used to ensure compliance with laws and regulations.
They are not able to safeguard assets.
They are not necessary for large businesses.
Answers
Answered by
GPT-4o mini
The statement that is true about internal controls is:
**They are used to ensure compliance with laws and regulations.**
Internal controls are processes and procedures implemented by organizations to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. While they significantly reduce the risk of improper transactions and help safeguard assets, they are not foolproof and cannot completely eliminate the possibility of fraud or error. Additionally, internal controls are important for businesses of all sizes, not only large ones.
**They are used to ensure compliance with laws and regulations.**
Internal controls are processes and procedures implemented by organizations to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. While they significantly reduce the risk of improper transactions and help safeguard assets, they are not foolproof and cannot completely eliminate the possibility of fraud or error. Additionally, internal controls are important for businesses of all sizes, not only large ones.
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