Question

What is the purpose of internal controls? Companies use strong internal controls to guarantee that loss is eliminated. Internal controls are used by managers as a way to reduce outstanding customer balances. Managers utilize internal controls as a basis of employee performance reviews. To help managers know if the business is receiving the assets and services it has paid for.

Answer 1

Answer:

The correct answer is: Companies use strong internal controls to guarantee that loss is eliminated.

Explanation:

The purpose of internal controls in an organization is to reduce losses.

It can be defined as the set of methods and procedures used by a company to ensure that its results are reliable, protection of the company's assets, efficiency in the allocation of resources, etc.

Effective internal control helps an organization to obtain essential information for making offensive or defensive decisions, therefore it corresponds to essential tools in the risk management process that seeks to reduce financial losses and assists in reaching the goals and objectives determined by the company's strategic planning .