Which one of the following is not an objective of a system of internal controls?
A) Safeguard company assets
B) Overstate liabilities in order to be conservative
C) Enhance the accuracy and reliability of accounting records
D) Increase efficiency of operations

Question

Quizplus · Accepted Answer

Overstating liabilities is not an objective of a system of internal controls. The primary objectives of a system of internal controls are to safeguard company assets, enhance the accuracy and reliability of accounting records, and increase efficiency of operations. Overstating liabilities would lead to inaccuracies and misrepresentations in financial statements.

Which One of the Following Is Not an Objective of a System