Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (11th Edition)
Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (11th Edition)
11th Edition
ISBN: 9780134078960
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
bartleby

Videos

Textbook Question
Book Icon
Chapter 8, Problem 1QC

Which of the following is not part of the definition of internal control?

Learning Objective 1

  1. Separation of duties
  2. Safeguard assets
  3. Encourage employees to follow company policies
  4. Promote operational efficiency

Expert Solution & Answer
Check Mark
To determine

Internal Control:It is a process for assuring achievement of an organization objectives through operational efficiency and effectiveness which includes financial reporting, compliance with the applicable laws and regulations.

Option that is not an objective of Internal control.

Explanation of Solution

Solution:

The correct answer is (c).

Explanations:

Definition of Internal control is internal control is a process designed to provide reasonable assurance regarding achievement of the following objectives:

  1. Safeguarding of assets.
  2. Encourage employees to follow company policies.
  3. Promote Operational efficiencies
  4. Compliance with applicable laws and regulations.

Given options can be analyzed as follows:

  1. Separation of duties is a control procedure to ensure that the employees are free from any kind of fraudulent activities but it’s not an internal control.
  2. Safeguard of assets is an internal control to ensure that the assets are safeguarded properly with proper control.
  3. Encourage employees to follow company policies, the internal control mechanism requires to follow all the policies of the company in an effective way.
  4. Promote operational efficiencies, a company following internal control procedure is expected to promote the operational efficiencies’ of the company.
Conclusion

From the above analysis, we can conclude that Separation of duties is not a part of definition of internal control.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
03:01
Students have asked these similar questions
FINANCIAL ACCOUNTING 9.3 QUESTION
General Accounting
FINANCIAL ACCOUNTING 3.6 QUESTION

Chapter 8 Solutions

Horngren's Accounting, The Financial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (11th Edition)

Knowledge Booster
Background pattern image
Accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Text book image
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Text book image
Accounting Information Systems
Accounting
ISBN:9781337619202
Author:Hall, James A.
Publisher:Cengage Learning,
Text book image
Principles of Accounting Volume 2
Accounting
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax College
Text book image
Auditing: A Risk Based-Approach to Conducting a Q...
Accounting
ISBN:9781305080577
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:South-Western College Pub
Text book image
Auditing: A Risk Based-Approach (MindTap Course L...
Accounting
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Cengage Learning
Text book image
Pkg Acc Infor Systems MS VISIO CD
Finance
ISBN:9781133935940
Author:Ulric J. Gelinas
Publisher:CENGAGE L
Internal Control Components; Author: Accounting Instruction, Help, & How To;https://www.youtube.com/watch?v=D8SSaqpE6L8;License: Standard Youtube License