Question

Chester Company has established internal control policies and procedures in order to achieve the following objectives:

1) Effective evaluation of management performance.
2) Assure that the accounting records contain reliable information.
3) Safeguard the company's assets.
4) Assure that employees comply with company policy.

Which of these objectives are achieved by accounting controls?
A. Objectives 1 and 2
B. Objectives 2 and 3
C. Objectives 3 and 4
D. All four objectives

Answer 1

B) Objectives 2 and 3

Step-by-step explanation:

Accounting controls are procedures that help a company ensure the validity and accuracy of its financial statements.

Therefore, one of the main priorities of accounting controls would be to make sure that accounting records are correct. By ensuring the validity of accounting records, the company's assets are safeguarded, since the possibility of something missing or being incorrectly recorded diminishes.