Question

The primary objective of internal controls is to reduce?

1) the opportunity for fraud.
2) the capacity for rationalization.
3) the incentive to engage in fraud.

Answer 1

The primary objective of internal controls is to reduce the opportunity for fraud.

Step-by-step explanation:

The primary objective of internal controls is to reduce the opportunity for fraud. Internal controls are policies and procedures implemented by organizations to safeguard their assets, ensure accurate financial reporting, and promote operational efficiency. By implementing internal controls, organizations can create a system of checks and balances that minimize the likelihood of fraud occurring.