Final answer:
Internal control involves plans designed to prevent fraud, ensure accuracy of financial records, and safeguard assets, thus encompassing all the options listed in the question. The correct answer is 4) all of the above.
Step-by-step explanation:
Internal control is a crucial aspect of an organization's financial and business practices. It comprises various plans and procedures that are implemented to 1) prevent fraud, 2) ensure accuracy of financial records, and 3) safeguard assets. These controls are put in place to provide reasonable assurance regarding the effectiveness and efficiency of operations, the reliability of financial reporting, and compliance with applicable laws and regulations.
Organizations design their internal control systems to address various types of risks that might affect the achievement of their objectives. Effective internal control helps an organization achieve its performance and profitability targets, and prevent the loss of resources. It also helps ensure that the organization is consistently able to produce reliable financial and management reports, and that the firm remains in compliance with laws and regulations affecting its activities.
Therefore, the correct answer to the student's question is 4) all of the above.