Which of the following is a benefit provided by internal control?
A)It ensures timely collection of Accounts Receivables.
B)It ensures that financial statements are produced timely.
C)It guarantees that a business makes profit.
D)It promotes operational efficiency.

Question

Quizplus · Accepted Answer

Internal control promotes operational efficiency by establishing clear procedures and guidelines for tasks and transactions, reducing errors and fraud, and ensuring that resources are used effectively. While internal control may indirectly contribute to timely collection of Accounts Receivables and accurate financial statements, these are not its primary objectives. Internal control also does not guarantee that a business makes a profit, as this depends on a variety of factors beyond control measures.

Which of the Following Is a Benefit Provided by Internal