Question

An internal control system consists of all policies and procedures used to protect assets, ensure reliable accounting, promote efficient operations, and urge adherence to company policies. Evaluate each of the following statements and indicate which are true and which are false regarding the objectives of an internal control system.

2. The primary objective of internal control procedures is to safeguard the business against theft from government agencies.

Short answer

Answer

1. The mentioned statement is False.

Step-by-step solution

Step-by-Step SolutionStep 1: Introduction

Government agencies: Government agencies are established by legislative, special government organizations set up for a particular reason, such as national security issues, to manage industries' resources or financial oversight.

Indicating true and false statements-

False

Internal control focuses on inclining further toward the internal activity of an association as opposed to the external. Although it can, in any case, be of effect in checking the excesses of outside parties like the public authority offices, that isn't its primary objective.