The text identified four basic purposes of internal control and several examples of specific controls. Which of the following demonstrates the strongest relationship between them?

Question

Quizplus · Accepted Answer

Safeguarding assets and separation of duties are directly related purposes of internal control. Separation of duties is a control that helps safeguard assets by ensuring that no single individual has complete control over a transaction from start to finish.

Answer: B 
 Edit checks are a specific control that helps ensure financial statement reliability by detecting and preventing errors in accounting data.

Answer: C 
 Bank reconciliation is a specific control that promotes operating efficiency by ensuring that bank statements and accounting records are in agreement.

Answer: D 
 Pre-numbered documents are a specific control that encourages compliance with management directives by providing an audit trail of transactions and ensuring that all transactions are accounted for. However, the relationship between pre-numbered documents and internal control purposes is not as strong as the relationships in options A, B, and C.

The Text Identified Four Basic Purposes of Internal Control and Several