List the Objectives of Internal Control and Give an Example

question 22

Essay

List the objectives of internal control and give an example of how each is implemented.
The objectives of internal control are to provide reasonable assurance that:
(1)Assets are safeguarded and used for business puposes.
(2)Business information is accurate.
(3)Employees comply with laws and regulations.

---

Definitions:

Surety

is a guarantee, usually in the form of a bond, where one party guarantees the debts or obligations of another party to a third party.

Surety

A financial guarantee by one party (the surety) to assume responsibility for the debt obligation of a borrower if that borrower defaults.

Principal Debtor

The primary individual or entity responsible for fulfilling the obligations of a debt or loan agreement.

Surety

A financial arrangement where a third party (surety) agrees to assume responsibility for the debt or obligation of another party if that party fails to meet their obligations.