Final answer:
Internal controls aim to safeguard assets, ensure reliable financial reporting, and assist with compliance with laws and regulations, but they are not designed to reduce debt financing costs. The options (A), (B), and (D) are correct.
Step-by-step explanation:
The question asks which of the following is not an objective of internal controls within a company. Internal controls are procedures and policies put into place by a company to ensure the achievement of several objectives. These include the safeguarding of assets, ensuring the reliability of financial reporting, and compliance with laws and regulations. However, internal controls are not specifically designed to reduce debt financing costs. This does not typically fall under the umbrella of objectives for internal controls. Instead, this would be an outcome of broader financial management strategies and decisions.
Understanding the role of corporate governance is crucial in grasping the full scope of internal controls. The board of directors, auditing firms, and outside investors all play critical roles in the corporate governance structure. The case of Lehman Brothers serves as a significant example where corporate governance failed, resulting in inaccurate financial information being disseminated to investors. Therefore, options (A), (B), and (D) are correct.