Hyperion Company has established internal control policies and procedures in order to achieve the following objectives:
(1) Safeguard the company's assets
(2) Assure that the accounting records contain reliable information
(3) Evaluate management performance effectively
(4) Assure that employees comply with company policies
Which of these objectives are primarily achieved by accounting controls?

Question

Quizplus · Accepted Answer

Objectives 1 and 2 are primarily achieved by accounting controls. Accounting controls include procedures for recording transactions, verifying the accuracy of information, and preventing and detecting fraud. These controls are designed to safeguard the company's assets and ensure that the accounting records contain reliable information. Objective 3 is primarily achieved by management controls, which include setting goals, measuring performance, and taking corrective actions. Objective 4 is primarily achieved by administrative controls, which include policies and procedures for hiring, training, and disciplining employees to ensure that they comply with company policies.

Hyperion Company Has Established Internal Control Policies and Procedures in Order