Who is responsible for Internal Controls?

• A. Everyone
• B. Management
• C. External Auditors
• D. Congress

Answer: (A)

Internal controls work best when everyone in the organization participates. The system is built so that policies and procedures guide how people perform tasks, safeguard assets, and report irregularities. Management has the primary duty to establish and maintain the control framework, but its effectiveness depends on every employee’s adherence and actions—doing their part correctly and raising concerns when controls fail. External auditors and Congress are important for evaluation and oversight, yet they don’t operate or own the day-to-day controls. So the responsibility for internal controls lies with everyone.