Indicate whether each of the following statements regarding internal controls is true or false. ________ a) Internal controls are used to provide reasonable assurance that the objectives of an enterprise will be accomplished.________ b) Internal controls can be divided into accounting controls and administrative controls.________ c) The mechanics of internal control systems do not vary from company to company.________ d) Accounting controls are concerned with the evaluation of performance and the assessment of the degree of compliance with company policies and public laws.________ e) Administrative controls are composed of policies and procedures that are designed to safeguard the assets and to assure that accounting records contain reliable information.
What will be an ideal response?
a) T b) T c) F d) F e) F
a) This is true. Internal controls provide reasonable, but not, absolute assurance.
b) This is true. Accounting and administrative controls are the two categories of controls.
c) This is false. Each company's internal control system is different.
d) This is false. This describes administrative controls.
e) This is false. This describes accounting controls.
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