Question

The purpose of internal controls includes all of the following except:

A. minimizing errors.
B. improving efficiency.
C. producing timely accounting information.
D. completely eliminating fraud.

Answer 1

Internal controls have multiple purposes including minimizing errors, improving efficiency, and producing timely accounting information. The correct option is: A. minimizing errors.

Step-by-step explanation:

The purpose of internal controls includes all of the following except:

1. Minimizing errors
2. Improving efficiency
3. Producing timely accounting information
4. Completely eliminating fraud

Internal controls are put in place to help organizations achieve their goals and objectives by ensuring the accuracy and reliability of financial reporting, safeguarding assets, and promoting operational efficiency. While internal controls can help minimize errors, improve efficiency, and produce timely accounting information, it cannot completely eliminate fraud as some level of risk always remains.