Internal control relates to an organization's achievement of objectives in three major categories.All of the following are examples of at least one category except:
A)Promoting compliance with the Sarbanes-Oxley Act.
B)Ensuring that plant assets are listed on the balance sheet at their net book value.
C)Developing a clear job description for each position in the company.
D)Providing conclusive proof that fraud has occurred.

Question

Quizplus · Accepted Answer

Internal control systems are designed to help an organization achieve its objectives in the areas of operational efficiency, financial reporting reliability, and compliance with laws and regulations. While promoting compliance with laws (like the Sarbanes-Oxley Act), ensuring accurate financial reporting (such as correct asset valuation on the balance sheet), and developing clear job descriptions to ensure operational effectiveness and compliance are all objectives of internal control systems, providing conclusive proof that fraud has occurred is more of an outcome of investigating a suspected control failure or fraud, rather than an objective of internal control itself. Internal controls aim to prevent, detect, and correct errors or fraud, but they do not inherently provide conclusive proof of fraud; that is the role of investigations and audits.

Internal Control Relates to an Organization's Achievement of Objectives in Three