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Primary purpose of an internal control system; 3 objectives

1. Summarize the primary purpose of an internal control system?
2. What are the three internal control objectives for financial reporting?
3. What are the accounting regulatory bodies, and discuss how the organization complies with the standards of the regulatory bodies that were selected.

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1. Summarize the primary purpose of an internal control system?

The stated purposes for internal control procedures are
1. To produce reliable financial statements,
2. To comply with laws and regulations
3. To have effective and efficient operations
4. To safeguard assets

The purposes are stated above as part of the definition, but on a more practical level, the purpose is to have a system of checks and balances that works within a company on a consistent basis which is used by every person and every system to promote accuracy, continuity and to minimize fraud, errors and omissions.

2. What are the three internal control objectives for financial reporting?

"The auditor's definition of internal control is a ...

Solution Summary

The 410 word solution lists the four stated purposes for an internal control system and then explains each of the regulatory bodies involved in setting standards.

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