Which of the Following Is Not a Primary Objective of Internal

question 15

Multiple Choice

Which of the following is not a primary objective of internal control as established by COSO?

• A)Efficiency and effectiveness of operations.
• B)Effective purchasing systems.
• C)Compliance with laws and regulations.
• D)Reliable financial reporting.

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Definitions:

Liabilities

These are obligations a business owes to external parties, including loans, accounts payable, mortgages, and other debts.

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for payment of premiums and the provisions of coverage.

Adjusting Entries

Journal entries made at the end of an accounting period to update certain accounts and ensure they reflect the true financial position of a company.

Adjusting Entries

These are journal entries made in the accounts to adjust revenues and expenses to the period in which they actually occurred, ensuring that financial statements reflect accurate figures.