Chapter 1, Problem 3.3EC

Which of the following are affected by the quality of an organization’s internal controls? a. Reliability of financial data. b. Ability of management to make informed business decisions. c. Ability of the organization to remain ¡n business. d. All of the above. e. Only a and c.

Why are internal accounting controls important to a business? What are advantages vs. the disadvantages? Is there a cost to the business for these internal controls? Who requires the controls?

True or False: Effectiveness is doing the right things of completing activities so that the organization’s goals are obtained. Political and legal factors are part of the external environment of a business. Delayering has no consequence on the span of control of an organization Shareholders can be sued for the debts of a limited company. Organizations that operate globally do not have to be sensitive to local conditions.