Which of the following is NOT one of the purposes of internal control?
A) To encourage employees to follow company policy
B) To safeguard the company's assets
C) To ensure accurate, reliable accounting records
D) To guarantee that a business makes a profit

Question

Quizplus · Accepted Answer

Internal control is not designed to guarantee that a business makes a profit. Its purpose is to protect the company's assets, promote the accuracy of financial information, and ensure that employees follow company policies and procedures. While internal control can help a business operate more efficiently and effectively, it cannot change fundamental economic factors that determine whether a business is profitable.

Which of the Following Is NOT One of the Purposes