Question

Shelly Eckert has prepared the following list of statements about internal control.

Identify each statement as true or false.

(a)		One of the objectives of internal control is to safeguard assets from employee theft, robbery, and unauthorized use.		Select the fraud triangle factor                                                          TrueFalse
(b)		One of the objectives of internal control is to enhance the accuracy and reliability of the accounting records.		Select the fraud triangle factor                                                          TrueFalse
(c)		No laws require U.S. corporations to maintain an adequate system of internal control.

Answer 1

(a) -- One of the objectives of internal control is to safeguard assets from employee theft, robbery, and unauthorized use.

Answer -

The Given statement is True.

.

(b) -- One of the objectives of internal control is to enhance the accuracy and reliability of the accounting records.

Answer -

The Given statement is True.

.

(c) -- No laws require U.S. corporations to maintain an adequate system of internal control.

Answer -

The Given statement is False, because the Sarbanes Oxley Act requires all publicly traded U.S. Corporations to maintain an adequate system of internal controls.