Final answer:
The least likely benefit of effective internal control is eliminating all employee fraud. Restricting access to assets, detecting ineffectiveness, and ensuring authorization of transactions are important benefits.
Step-by-step explanation:
The least likely benefit of effective internal control is eliminating all employee fraud. While internal control systems are designed to prevent and detect fraud, it is not realistic to expect that all employee fraud can be completely eliminated. Rather, internal controls are put in place to deter and minimize the occurrence of fraud.Restricting access to assets is an important benefit of effective internal control. By implementing proper access controls, organizations can prevent unauthorized individuals from misusing or stealing assets.Another benefit of effective internal control is detecting ineffectiveness. Internal controls help organizations identify areas where processes are not running smoothly or efficiently, allowing them to address and improve these areas to enhance overall effectiveness.
Lastly, effective internal control ensures the authorization of transactions. By establishing a system of checks and balances, organizations can ensure that all transactions are approved by the appropriate individuals and meet the necessary criteria.Among the options provided, eliminating all employee fraud would be least likely to be considered a benefit of effective internal control. Internal control systems aim to mitigate risk to a reasonable level, but they cannot guarantee the complete elimination of fraud due to inherent limitations. Effective internal controls do contribute to restricting access to assets, detecting ineffectiveness, and ensuring authorization of transactions, which are key components in the management of an organization's risks and maintaining the integrity of financial reporting.