Question

What are internal controls designed to do?

Options

• Safeguard assets and optimise the use of resources

• Only achieve maximum revenue

• Only safeguard assets

• Only ensure accurate accounting records

Answer 1

Safeguard assets and optimise the use of resources.

Explanation:

Internal controls are the policies, procedures and checks an organisation puts in place to protect its assets, ensure reliable records and reporting, promote efficient and effective use of resources, and support compliance, so they do more than just safeguard assets.