Important Objectives of a System of Internal Controls Are to Safeguard

question 196

Essay

Important objectives of a system of internal controls are to safeguard assets and to enhance the accuracy and reliability of the accounting records. Briefly discuss how (1) cost-benefit considerations, (2) the human element, and (3) the size of the business, affect the implementation of a system of internal controls.
b. Dean, here are some reasons why you must develop a system of internal controls:

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Definitions:

Relatively Inelastic

Describes a demand characteristic where a change in price leads to a smaller proportionate change in quantity demanded.

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on items such as alcohol, tobacco, and gasoline.

Price-Elastic Demand

The characteristic of demand for a good indicating that a change in price results in a relatively larger change in the quantity demanded.

Excise Tax

A tax on the sale or use of specific products or transactions, typically integrated directly into the cost of the good.