Internal Controls Are Designed to Accomplish Five Objectives That Include

question 104

Multiple Choice

Internal controls are designed to accomplish five objectives that include compliance with legal requirements,promote operational efficiency,safeguard assets,encourage employees to follow company policy and:

• A)prevent misappropriation of assets.
• B)prevent collusion.
• C)prevent fraud.
• D)ensure accurate,reliable accounting records.

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Definitions:

Beneficiary

A person who can expect to benefit from a relationship.

Mental Capacity

The legal ability of an individual to make decisions or engage in transactions due to their ability to understand and appreciate the implications of their actions.

Fraud

The intentional deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.

Misrepresentation

A false or misleading statement that induces another party to enter into a contract or agreement, which can lead to legal remedies.