A system of internal control can only provide reasonable assurance, which is based on the belief that

A) the system is infallible.
B) the system can always detect errors and irregularities.
C) the costs of establishing control activities should not be greater than the expected benefit.
D) the human element is not important.

Internal Control

A process designed by an organization's management and personnel to provide reasonable assurance regarding the achievement of effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations.

Reasonable Assurance

A concept in auditing that suggests although not absolute, there is a high level of confidence in the financial statements accuracy.

Control Activities

Procedures and policies that are implemented by an entity to ensure that its directives are carried out, including safeguarding assets and preventing and detecting errors and fraud.