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.