1.According to The IIA, Internal controls are designed to provide reasonable assurance that

AMaterial errors or fraud will be prevented or detected and corrected within a timely period by employees in the course of performing their assigned duties.

BManagement’s plans have not been circumvented by worker collusion.

CThe internal auditing department’s guidance and oversight of management’s performance is accomplished economically and efficiently.

DManagement’splanning, organizing ,and directing processes are properly evaluated.

A YES According to SIAS 1,Reasonable assurance is provided when cost-effective actions are taken to restrict deviations to a tolerable level.. This implies, for example, that material errors and improper or illegal acts will be prevented or detected and corrected within a timely period by employees in the normal course of performing their assigned duties. The cost-benefit relationship is considered by management during the design of systems. The potential loss associated with any exposure or risk is weighed against the cost to control it”.

BnoCollusion is an inherent limitation of internal control.

CnoThe board of directors or a similar body is responsible for the guidance and oversight of management.

DnoThe examination and evaluation of management processes is a function of the internal auditing department.