Target Exam

CUET

Subject

-- Accountancy Part C

Chapter

Overview of Computerised Accounting System

Question:

What are internal controls designed to do?

Options:

Safeguard assets and optimise the use of resource

Achieve maximum revenue

Safeguard assets

Ensure accurate accounting records

Correct Answer:

Safeguard assets and optimise the use of resource

Explanation:

The correct answer is option 1- Safeguard assets and optimise the use of resource.

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.