Question

A company's plans to minimize theft and enhance the accuracy of accounting information are referred to as:

Answer 1

Answer:

Internal controls.

Explanation:

Internal controls can be defined as the policies, set of rules, and procedures implemented or put in place by an organization to protect its assets, boost efficiency, enhance financial accountability, enforce adherence to company policies and prevent fraudulent behaviors among the employees.

The main purpose of internal controls in an organization or a company is to guarantee that losses are eliminated as there's a reliable and an accurate accounting system.

This ultimately implies that, an internal control involves the timely use of both internal and external sources of auditing or financial reporting and as such enhance the maintenance of accurate and proper financial records which would also improve their operational efficiency. Internal controls if properly executed helps to increase operational efficiency, protect and safeguard assets, provides accurate financial information, prevents fraudulent or unlawful behaviors, timeliness of financial records and reporting.

Hence, a company's plans to minimize theft and enhance the accuracy of accounting information are referred to as internal controls.