Internal controls are policies and procedures defined by the management to ensure the smooth functioning of the business processes. Internal controls ensure the complete and correct accounting and safeguards to the assets. The test of control is performed to check the design, operations and effectiveness of the internal controls related to the financial statements. To choose: the combination that would result in greatest decrease in sample size .

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Chapter 8, Problem 8.14MCQ

To determine

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Internal controls are policies and procedures defined by the management to ensure the smooth functioning of the business processes. Internal controls ensure the complete and correct accounting and safeguards to the assets.

The test of control is performed to check the design, operations and effectiveness of the internal controls related to the financial statements.

To choose: the combination that would result in greatest decrease in sample size.

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