In fulfilling the four purposes of internal control, managers should ensure that:

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Quizplus · Accepted Answer

The four purposes of internal control are to safeguard assets, ensure accuracy and reliability of accounting records, promote efficiency and effectiveness of operations, and ensure compliance with laws and regulations. While eliminating the opportunity for theft is important, it is just one aspect of safeguarding assets. All employees need to be bonded is also not necessary in all cases. Ensuring that costs are less than benefits is a key consideration to ensure that the internal control system is efficient and effective, and that resources are not wasted on unnecessary control activities. Understanding the importance of SOX, while important, is not directly related to fulfilling the four purposes of internal control.

In Fulfilling the Four Purposes of Internal Control, Managers Should