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:

Pennsylvania System

A penal system, also known as the separate system, developed in the 19th century, focusing on solitary confinement and individual penance as a form of rehabilitation.

General Contractor

A principal contractor who is responsible for the oversight of a construction project, managing subcontractors, and the coordination of the work on site.

Deed of Trust

A legal document that secures a real estate transaction by transferring the title of the property to a trustee until a loan is paid in full.

Party

A person or entity involved in a legal transaction or case; can also refer to one side of a contractual agreement.