Question

Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to (a) safeguard its assets, and (b)

A) Enhance employee benefits
B) Increase liabilities
C) Ensure ethical behavior
D) Boost revenue

Answer 1

Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to safeguard its assets and ensure ethical behavior.

Step-by-step explanation:

Internal control consists of the plan of organization and all of the related methods and measures adopted within a business to safeguard its assets and ensure ethical behavior. It is an important aspect of corporate governance that helps prevent fraud and misappropriation of assets.

For example, a company may implement internal control measures such as segregation of duties, where different employees are responsible for different stages of a transaction, to prevent any single person from having too much control and potential opportunity to commit fraud.

Internal control also involves implementing policies and procedures that promote ethical behavior among employees, such as clear guidelines for the use of company funds and resources.