Question

A reason to establish internal control is to A. Provide reasonable assurance that the objectives of the organization are achieved. B. Encourage compliance with organizational objectives. C. Ensure the accuracy, reliability, and timeliness of information. D. Safeguard the resources of the organization.

Answer 1

Answer:   D. Safeguard the resources of the organization.

Explanation:

The functions of internal controls are

• to minimize risks
• to protect assets
• to ensure accuracy of records
• to promote operational efficiency
• to encourage adherence to policies, rules, regulations, and laws.c

The reason to establish internal control is to assist safeguard an organization and its objectives.

Hence, the correct option is D.