ITPEC IP April 2020 Question 64
ITPEC IP April 2020 — Question 64 of 100
Statements A and C are appropriate. Internal control includes compliance with laws and socially accepted norms, and its principles are valuable for unlisted as well as listed companies. Sound controls support reliable reporting, effective operations, compliance, and asset protection.
Answer (a)
Why not others:
- B incorrectly excludes conformity with social norms
- D incorrectly claims internal control is needed only by listed companies
Key rule: Internal control is a management responsibility relevant to organizations generally, even when formal reporting obligations differ.
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