Internal Controls in Business
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Questions and Answers

What is the purpose of internal controls?

  • To eliminate the need for organizational structures
  • To ensure that all employees are satisfied
  • To achieve business objectives and mitigate risk (correct)
  • To increase the workload of management
  • Where do control activities occur within the enterprise?

  • Throughout the enterprise, at all levels and in all functions (correct)
  • Only at the senior management level
  • Only in the human resources department
  • Only in the finance department
  • What do control activities include?

  • Only approvals and authorizations
  • Verifications, reconciliations, and reviews of operating performance (correct)
  • Social media management
  • Only security of assets
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