Question

An internal control system is used to do all of the following: (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
(A) Protect assets checked
(B) Prevent all losses checked
(C) Ensure reliable accounting checked
(D) Control the entire operation

Answer 1

Answer:

(A) Protect assets checked

(C) Ensure reliable accounting checked

Explanation:

In auditing and financial accounting, internal control systems are made up of policies and procedures set up to govern reasonable assurances of an organization’s objectives. Management can use a combined effort of these policies and procedures to

A) Protect assets checked – Designing better internal controls will ensure assets are protected from accidental loss or fraud.

B) Ensure reliable accounting check – Well designed internal controls helps facilitate accurate and complete financial information.