Which of the Following Is TRUE of Internal Control

question 76

Multiple Choice

Which of the following is TRUE of internal control?

• A) A company's outside auditor is responsible for the company's internal control system.
• B) One of the major purposes of internal control is to ensure accurate, reliable accounting records.
• C) Internal control procedures tend to diminish the importance of operational efficiency.
• D) Internal controls are only necessary for large businesses.

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Definitions:

Sole Proprietorships

Businesses owned and operated by one individual; the most common form of business organization in the United States.

S Corporation

A corporation taxed as though it were a partnership with restrictions on shareholders.