Internal Control Quiz

What do internal controls help ensure?

• Higher costs

• Inaccurate reporting

• Compliance with laws

• Increased errors

What is a strength of internal controls?

• Increases waste

• Enhances operational efficiency

• Reduces accuracy

• Promotes fraud

What can cause human error in internal controls?

• Carelessness

• Strong design

• Segregation of duties

• Regular audits

What is a weakness of internal controls?

• Legal compliance

• Operational efficiency

• Cost-benefit optimization

• High implementation costs

What helps prevent fraud in organizations?

• Collusion among employees

• Segregation of duties

• High costs

• Complexity

What is a benefit of ongoing monitoring?

• Reduce efficiency

• Create confusion

• Increase costs

• Detect irregularities early

What can management do that affects internal controls?

• Follow procedures

• Override controls

• Enhance compliance

• Reduce costs

What is a strength of a flexible internal control system?

• Stifles innovation

• Adapts to change

• Reduces efficiency

• Increases complexity

What can overly rigid controls lead to?

• Innovation

• Adaptability

• Operational inflexibility

• Cost savings

What do strong internal controls reduce?

• Audit risk

• Compliance issues

• Resource use

• Operational efficiency