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Which of the following is an objective of internal​ control?

A. to ensure timely payment of accounts payable
B. to guarantee that a business makes a profit
C. to ensure timely collection of accounts receivable
D. to encourage employees to follow company policies

2 Answers

3 votes

Final answer:

Internal control aims to encourage employees to follow company policies.

Step-by-step explanation:

The correct answer is D. to encourage employees to follow company policies. This objective focuses on promoting ethical behavior and adherence to established rules and procedures within an organization. Internal control systems, such as code of conduct, employee training programs, and regular monitoring, are implemented to encourage employees to comply with company policies.

Additionally, anticipated currency depreciation can lead investors to divest from that currency, further reducing its value. And if foreign investors become less willing to hold a country's assets, it can trigger a demand decrease for that currency and a rapid devaluation, which could exacerbate trade deficits or even cause a speculative attack as seen in historical currency crises.

Therefore, countries may devalue their currencies intentionally to improve trade balances, but they must carefully consider the potential for negative economic impacts, such as possible increased consumption costs and the risk of inflation.

User KrzysDan
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4 votes

Answer: The correct answer is d) to encourage employees to follow company policies

Step-by-step explanation:

The objectives of internal control are:

  • safeguard assets
  • encourage employees to follow company policies
  • promote operational efficiency
  • ensure accurate reliable accounting records
  • comply with legal requirements

User Cecile
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