Which Is NOT an Objective of an Internal Control System

question 58

Multiple Choice

Which is NOT an objective of an internal control system?

• A)Safeguarding of assets
• B)Compliance with company policies
• C)Compliance with legal requirements
• D)Risk assessment

---

Definitions:

Retained Earnings

Retained earnings are the portion of a company's profits that is held or retained and saved for future use, investment, or to pay debt.

Solvency

The ability of a company to meet its long-term financial obligations and continue its operations in the foreseeable future.

Fair Value

The estimated market value of an asset or liability based on current conditions and acknowledged by both buyer and seller.

Assets

Economic resources owned or controlled by a business or individual, expected to provide future benefits.