alleryStart learning →Internal control can give an organization which level of assurance about meeting its objectives?
AReasonable but not absolute
BAbsolute and complete
COnly moral assurance
DNo assurance at all
Answer & Solution
Correct answer: A. Reasonable but not absolute
Costs and benefits of extra controls limit them, so management gets a high degree of assurance that still falls short of a guarantee.
Keep practising Risk Assessment and Internal Control
Browse all Risk Assessment and Internal Control questions for CA Final, or explore more Auditing topics.
Related questions
Which is correct about auditors and internal control?The COSO risk assessment component involves what?A payables system matches order, receipt and invoice before paying. Which objective?Maintaining documentation to substantiate transactions is which control activity?Why did the IASB decline a uniform numeric materiality threshold?Materiality is reassessed at the conclusion of the audit before the report is issued. WhatWhat is the purpose of setting performance materiality?Which expression gives audit risk in the audit risk model?