Question

Three objectives of a company's internal control system should be safeguarding assets, checking the accuracy and reliability of accounting data, and promoting operational efficiency. A fourth objective of a company's internal control system should be:
1.Preventing embezzlement of assets
2.Encouraging adherence to prescribed managerial policies
3.Avoiding the payment of overtime to company employees
4.Revising standards for production costs on a weekly basis

I am thinking it should be 2, but am not certain. Can anyone assist?

Answer 1

I agree -- 2 is the best answer.

Answer 2

Thank you.