Why Is Internal Control So Important

Multiple Choice

Why is internal control so important?

A) Internal control is encouraged by several regulatory organizations, and it is required by law for publicly traded companies in an enactment in 1978 by the Cohen Commission.
B) Internal control is essential in lowering costs due to errors and irregularities in an organization by using risk assessment and risk management techniques.
C) Internal control enables management to maintain control over all its activities and it provides a measure of protection against erroneous or fraudulent financial reporting.
D) The U.S. Congress has enacted legislation requiring management of publicly-traded companies to report on the effectiveness of their internal control.