Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Overview of Computerised Accounting System

Question:

What are internal control designed to do?

Options:

Safeguard assets and optimise use of resource

Only to achieve maximum revenue

Only safeguard assets

Only ensure accurate accounting records

Correct Answer:

Safeguard assets and optimise use of resource

Explanation:

The correct answer is Option (1) - Safeguard assets and optimise 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.