Final answer:
Reviewing rate authorization forms for authorized signatures fulfills objectives concerning the authorization, accuracy, and validity of transactions and serves as an internal control to verify proper approval and prevent unauthorized activities.
Step-by-step explanation:
When examining rate authorization forms to verify the existence of authorized signatures, you are aiming to achieve certain transaction objectives. These objectives are intricately related to internal control practices within an organization and are concerned primarily with the authorization, accuracy, and validity of transactions. Checking for authorized signatures ensures that the transaction has been properly approved, which is a vital part of preventing unauthorized or fraudulent activities.
For example, if a company issues a payment, it should be supported by a rate authorization form with signatures from individuals who have the delegated authority to approve such payments. This control mechanism acts as a deterrent and a method of detection for transactions that may not have been appropriately initiated or approved. Additionally, it aligns with the accounting concept of internal verification, reinforcing the reliability of financial reporting.