Introduction: Internal control is the process implemented by the company’s officials which helps in achieving organizational objectives of effectively managing operations, reporting and compliance with processes and laws.
To choose: Whether the given statement is true or false.
Answer to Problem 1TFQ
The given statement is true.
Explanation of Solution
When there is effective control implemented in the organization, adherence to best internal practices and procedures is ensured. When best practices are implemented, it helps in achieving efficiency in all activities of the organization implying wastes are controlled, process time are reduced and delays in processes are controlled. Financial reporting which is important both internal and external users of financial statements can be done effectively, speedily and accurately. When reports are available in time and contains all required details, it provides scope for more informed decisions. Thus, the given statement is true.
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Chapter 3 Solutions
ACP AUDITING - RISK BASED APPROACH
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- Internal Controls should be created with focus on which aspect of the organization? All of the Above Operational Reporting Financial Reporting Compliance Reportingarrow_forwardAccounting What is the responsibility of auditors in ensuring accurate financial reporting and maintaining stakeholder trust?arrow_forward
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