Question

Adverse opinions on the effectiveness of internal control are-

A. Commonplace among larger companies.
B. Rare for large, well-established companies.
C. Never seen in practice.
D. Routinely seen in practice.

Answer 1

Adverse opinions on the effectiveness of internal control are routinely seen in practice, especially among larger companies. These opinions stem from concerns about corruption, inefficiencies, and high costs.

Step-by-step explanation:

Adverse opinions on the effectiveness of internal control are routinely seen in practice especially among larger companies. While well-established companies may have more robust internal controls in place, issues and weaknesses can still exist.

These adverse opinions often stem from concerns about corruption, inefficiencies, and the high cost associated with implementing and maintaining effective internal controls. However, despite the criticisms, internal control remains a necessary and important function for organizations to mitigate risks and safeguard their assets.