The Main Purposes of Internal Controls Include

question 18

Multiple Choice

The main purposes of internal controls include:

• A)prevention of error,theft,and fraud.
• B)promotion of efficiency.
• C)ensuring compliance with laws and regulations.
• D)all of the above.

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Definitions:

Contingent Liability

A potential financial obligation that may arise depending on the outcome of a future event.

Do Not Disclose

A directive or policy to keep certain information confidential and not share it with unauthorized individuals or parties.

Social Security Tax

A payroll tax that funds the Social Security program, which provides benefits for retirees, disabled persons, and survivors.

Medicare Tax

A federal tax deducted from employees' wages and matched by employers to fund the Medicare program, providing health insurance for individuals over 65.