Question

Which one of the following is not an objective of a system of internal controls? a. Safeguard company assets. b. Enhance the accuracy and reliability of accounting records c. Fairness of the financial statements. d. Reduce the risks of errors

Answer 1

Answer:

c. Fairness of the financial statements.

Explanation:

Internal controls are rules, regulations, procedures that are required for the business organization to run the organization in a smooth manner.

There are various objective of internal control system which are as follows:

1. To safeguard the company assets

2. Motive the employees to follow up the policy of the business organization

3. Encouraging business performance

4. Make accounting records more accurate and reliable

5. The chances of errors risk got reduced

6. Meet statutory requirements and so on