Which of the following statements is true regarding internal controls?
A.
Strategic objectives are prerequisites to establishing internal controls.
B.
Internal controls eliminate process breakdowns caused by human errors.
C.
Well-established internal controls cannot be overridden.
D.
Robust internal controls ensure business success.
The Answer Is:
A
This question includes an explanation.
Explanation:
Strategic objectives are prerequisites to establishing internal controls. This is because internal controls are designed to ensure that the actions taken by an organization align with its strategic objectives, helping to manage risks that could impede the organization from achieving these goals.
COSO Framework and IIA guidance on internal controls.
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