The degree of effectiveness of an internal control system depends on:
Correct answer: A. The design of the internal control system and the implementation of the controls
- A. The design of the internal control system and the implementation of the controls
- B. The design of the internal controls and the implementation of the control system
- C. The implementation of the controls and the correctness of the accounting records
- D. The design of the internal control system and the correctness of the accounting records
Explanation
Control effectiveness requires both a properly designed control system and the effective implementation of its controls. Good design alone cannot prevent errors if controls are not carried out.
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About Auditing
Auditing examines accounting records and financial statements to determine whether they present a reliable and fairly stated position. The subject covers audit objectives, internal controls, audit evidence, materiality, vouching, verification, working papers, auditor independence, audit reports, and the distinction between an audit and accounting or investigation.
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