What is the primary benefit of effective internal control in an organization?
A) Achievement of certain organizational goals.
B) Completion of a successful audit for the entity.
C) Shareholder involvement in the company's success.
D) Obtaining profitability and financial strength.

Question

Quizplus · Accepted Answer

The primary benefit of effective internal control in an organization is the achievement of certain organizational goals. Internal controls help in ensuring that the company's assets are safeguarded, financial reporting is accurate, and compliance with laws and regulations is achieved. All of these contribute towards the organizational goals being met. While completing a successful audit and obtaining profitability and financial strength are important, they are not the primary benefit of internal controls. Shareholder involvement is not directly related to effective internal control.

What Is the Primary Benefit of Effective Internal Control in an Organization