Which One of the Following Is Not an Objective of a System

question 154

Multiple Choice

Which one of the following is not an objective of a system of internal controls?

• A) Safeguard company assets
• B) Overstate liabilities in order to be conservative
• C) Enhance the accuracy and reliability of accounting records
• D) Reduce the risks of errors

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Definitions:

Competing Business

A company that operates in the same industry and market segment as another, offering similar products or services.

Director

An individual appointed to serve on the board of an organization, responsible for overseeing and guiding the organization's policies, finances, and operations.

Promissory Note

A financial instrument that contains a written promise by one party to pay another a definite sum of money either on demand or at a future specific date.

Fiduciary Duty

A duty required by law for one entity to prioritize the welfare of another while managing their finances, assets, or private data when given such responsibility.