A Company Should Develop Internal Controls That Provide Reasonable, but Not

question 111

True/False

A company should develop internal controls that provide reasonable, but not absolute, assurance that the financial statements are fairly stated.

---

Definitions:

Administrative Agency

A government body responsible for enforcing laws and regulations, often specializing in specific areas such as health, safety, or the environment.

Federal Agency Rules

Regulations established by federal agencies that govern specific aspects of administrative law and public policy in various sectors.

Established Procedures

Standard methods and processes developed over time, recognized and followed for conducting certain actions or operations within an organization or field.

Administrative Agencies

Governmental bodies that have the authority to implement and administer particular legislation.