Omar is a general manager at FRD Corporation.He recently attempted to reorganize FRD from three departments of ten people each to six departments of five people each.Which purpose of internal control is most likely to be impacted by the change?
A)Safeguarding assets
B)Ensuring financial statement reliability
C)Promoting operational efficiency
D)Uncovering fraud

Question

Quizplus · Accepted Answer

The purpose of internal control most likely impacted by this change is promoting operational efficiency. The reorganization of departments will likely improve efficiency by allowing for better allocation of resources and may result in increased productivity. However, this change may not necessarily impact the other purposes of internal control, such as safeguarding assets, ensuring financial statement reliability, or uncovering fraud.

Omar Is a General Manager at FRD Corporation