Internal Control

Internal control refers to the processes and systems implemented by an organization to ensure the integrity of its financial reporting.

• True

• False

The purpose of internal control is solely to safeguard assets and prevent fraud.

• True

• False

An internal control system is uniform for all organizations, regardless of size or nature.

• True

• False

Segregation of duties is a preventive control that ensures no one person is responsible for both authorizing and executing transactions.

• True

• False

Detective controls are implemented to prevent errors or irregularities from occurring in the first place.

• True

• False

Corrective controls are used to identify issues after they have occurred and correct them.

• True

• False

Internal controls play a critical role in risk management by helping organizations identify and mitigate potential risks.

• True

• False

Internal control systems are important only for large organizations, as smaller organizations do not face the same risks.

• True

• False

One of the benefits of internal controls is ensuring that financial reports are accurate and reliable.

• True

• False

  Access controls, which restrict access to sensitive information, are an example of a preventive internal control.

• True

• FAlse