Internal control relates to an organization’s achievement of objectives in three major categories. Which of the...

Internal control relates to an organization’s achievement of objectives in three major categories. Which of the following best pairs one of the categories with a specific example?

		Effectiveness & efficiency of operations, fulfilling the requirements of the Foreign Corrupt Practices Act
		Effectiveness & efficiency of operations, listing appropriate assets at their current market value
		Reliability of financial reporting, fulfilling the requirements of the Foreign Corrupt Practices Act
		Reliability of financial reporting, listing appropriate assets at their current market value

Solutions

Expert Solution

The correct answer for the question is Option D - Reliability of Financial reporting, listing appropriate assets at their current Market value. This statement is true.One of the most important goals of Internal controls is to ensure there is accuracy and reliability of financial reporting and also listing the appropriate assets at its current market value to ensure transparency and accurate financial reporting.

Option A & Option C are incorrect as fulfillment of requirements under the Foreign Corrupt Practices act is not a major objective of Internal controls within an organization.

Option B is incorrect as more than the effectiveness and efficiency of operations, it is the reliability of Financial reporting that the organization's Internal control is primarily focussed on. Hence, this option is not the valid answer.

Please let me know if you have any questions via comments and all the best :) !

ekkarill92 answered 6 months ago

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