Asked by Jesus Armenta on May 07, 2024
Verified
There are three internal control objectives and they are to safeguard the company's reputation, ensure accurate financial reports, and ensure compliance with applicable laws.
Internal Control Objectives
The goals aimed at ensuring the reliability of financial reporting, compliance with laws and regulations, and effectiveness of operations.
Financial Reports
Documents that provide an overview of a company's financial condition, including balance sheets, income statements, and statements of cash flows.
Applicable Laws
The set of relevant laws and regulations that apply within the jurisdiction of a business operation or transaction.
- Grasp the objectives and significant components of internal control systems.
Verified Answer
SC
Shakira CarterMay 13, 2024
Final Answer :
False
Explanation :
The three primary objectives of internal controls are to ensure efficient and effective operations, reliable financial reporting, and compliance with laws and regulations. Safeguarding a company's reputation, while important, is not typically listed as a primary objective of internal controls.
Learning Objectives
- Grasp the objectives and significant components of internal control systems.