Which of the following is an objective of internal control?
A)to encourage employees to follow company policies
B)to ensure timely payment of Accounts Payables
C)to ensure timely collection of Accounts Receivable
D)to guarantee that a business makes a profit

Question

Quizplus · Accepted Answer

The objective of internal control is to ensure reliable financial reporting, compliance with laws and regulations, and effective and efficient operations. Encouraging employees to follow company policies is a way to achieve effective and efficient operations. Ensuring timely payment of Accounts Payables and timely collection of Accounts Receivable are specific control procedures related to financial reporting and operations, but they are not the overarching objective of internal control. Guaranteeing that a business makes a profit is not a realistic objective of internal control since there are many factors outside of the control of internal control processes that affect profit.

Which of the Following Is an Objective of Internal Control