What is the primary benefit of effective internal control in an organization?
A)Achieving certain organizational goals.
B)Completing a successful audit for the entity.
C)Maximizing value for shareholders.
D)Obtaining profitability and financial strength.

Question

Quizplus · Accepted Answer

The primary benefit of effective internal control in an organization is achieving certain organizational goals. Internal control helps to ensure that management's objectives for the organization are met, including the safeguarding of assets, the prevention and detection of fraud and error, and the accuracy and completeness of financial reporting. While completing a successful audit, maximizing value for shareholders, and obtaining profitability and financial strength are all important objectives for an organization, they are not the primary benefit of effective internal control.

What Is the Primary Benefit of Effective Internal Control in an Organization