Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Overview of Computerised Accounting System

Question:

What are the internal controls designed to do?

Options:

Only ensure accurate accounting records

Safeguard assets and optimize use of resource

Only safeguard assets

Only achieve maximum revenue

Correct Answer:

Safeguard assets and optimize use of resource

Explanation:

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.