Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Overview of Computerised Accounting System

Question:

Internal controls are designed to do :

Options:

Safeguard the assets and optimise use of resources

Only to achieve maximum revenue

Only safegaurd the assets

Only ensure accurate accounting records

Correct Answer:

Safeguard the assets and optimise use of resources

Explanation:

The correct answer is Option 1- Safeguard the assets and optimise use of resources.

The primary purpose of internal controls is to help safeguard an organization and further its objectives. Internal controls function to minimize risks and protect assets, ensure the accuracy of records, promote operational efficiency, and encourage adherence to policies, rules, regulations, and laws.