Three objectives of a company's internal control system should be safeguarding assets, checking the accuracy and reliability of accounting data, and promoting operational efficiency.A fourth objective of a company's internal control system should be:
A)Preventing embezzlement of assets
B)Encouraging adherence to prescribed managerial policies
C)Avoiding the payment of overtime to company employees
D)Revising standards for production costs on a weekly basis

Question

Quizplus · Accepted Answer

Encouraging adherence to prescribed managerial policies is a key objective of an internal control system because it ensures that all activities are aligned with the company's goals and policies, thereby supporting the achievement of operational efficiency, reliability of financial reporting, and compliance with laws and regulations.

Three Objectives of a Company's Internal Control System Should Be