Can someone please summarize the primary purposes of an internal control system?
Also, what are the three internal control objectives for financial reporting are?© BrainMass Inc. brainmass.com March 4, 2021, 8:21 pm ad1c9bdddf
The system of internal control is designed to provide reasonable assurance to the audit committee, the shareholders, and the independent auditors that three basis objectives of the organization are being met:
1. Effectiveness and efficiency of operations
2. Reliability of financial ...
The cited solution explains the overall objectives of the system of internal control including the impact to various stakeholders. The three specific objectives are listed followed by a short narrative of the apparent breakdown in the system in recent times. Sarbanes Oxley has expanded the criteria for control objectives and the solution briefly mentions those changes with a URL for further reference.