Which One of the Following Statements Regarding Internal Control Is

Multiple Choice

Which one of the following statements regarding internal control is true?

A) Companies can design a system of internal control that is foolproof.
B) A well-designed internal control system is a luxury that few companies can afford.
C) It is easier to implement an effective internal control system in a small company because of the limited number of employees.
D) Large companies are able to devote a substantial amount of resources to internal control systems because these companies have the assets to justify the cost.