What might indicate that a business has a strong internal control system?

A strong internal control system is typically characterized by regular audits and compliance checks. This practice helps ensure that the business is adhering to established policies and regulations, effectively managing risks, and maintaining the integrity of its financial reporting and operational processes. The presence of regular audits indicates that the organization is committed to monitoring its operations and assessing the effectiveness of its controls. This proactive approach not only helps in identifying potential issues before they escalate but also reinforces accountability and transparency within the organization.

In contrast, high employee turnover, frequent equipment malfunctions, and low customer satisfaction ratings are signs that may indicate underlying problems in a business. They could suggest a lack of adequate training, poor management practices, or insufficient resources, which can all undermine the effectiveness of internal controls. Therefore, option B stands out as a clear indicator of a robust internal control system.