Chester Company has established internal control policies and procedures in order to achieve the following objectives:
1)Effective evaluation of management performance.
2)Assure that the accounting records contain reliable information.
3)Safeguard the company's assets.
4)Assure that employees comply with company policy.
Which of these objectives are achieved by accounting controls?
A)Objectives 1 and 2
B)Objectives 2 and 3
C)Objectives 3 and 4
D)All four objectives

Question

Quizplus · Accepted Answer

Accounting controls are designed to ensure the reliability of accounting records, which correspond to objective 2. They are also crucial in safeguarding the assets of a company, which corresponds to objective 3. However, objectives 1 and 4 are not directly related to accounting controls but rather to performance evaluation and employee compliance, respectively. Therefore, the best choice is B, as it corresponds to the two objectives achieved by accounting controls.

Chester Company Has Established Internal Control Policies and Procedures in Order