Defining internal controlInternal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate accounting records.RequirementsWhich objective do you think is most important?Which objective do you think the internal controls must accomplish for the business to survive? Give your reason.

Question
Asked Jan 3, 2020
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Defining internal control

Internal controls are designed to safeguard assets, encourage employees to follow company policies, promote operational efficiency, and ensure accurate accounting records.

Requirements

  1. Which objective do you think is most important?
  2. Which objective do you think the internal controls must accomplish for the business to survive? Give your reason.
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Expert Answer

Step 1

Internal controls are implemented with an objective to ensure the reliability of financial statements and safeguarding the assets of the entity to prevent frauds. Implementation of internal controls induce the management to adhere t...

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