The Objectives of Internal Control Are to

question 35

Multiple Choice

The objectives of internal control are to

• A) control the internal organization of the accounting department personnel and equipment
• B) provide reasonable assurance that assets are safeguarded and used for business purposes, business information is accurate, and laws and regulations are complied with
• C) prevent fraud, and promote the social interest of the company
• D) provide control over "internal-use only" reports and employee internal conduct

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Definitions:

Trouble

A vague term that could refer to difficulties or problems but lacks specificity in an economic or defined key-term context.

Implementation Lag

The time between the identification of a need for a policy and the moment the policy takes effect.

Fiscal Policy

Governmental adjustment of its spending levels and tax rates to monitor and influence a nation's economy.

Monetary Policy

Monetary policy involves the management of a nation's money supply and interest rates by its central bank to influence economic activity, inflation, and unemployment.