💼 Pre-MBA Exam Prep

The purpose of internal controls in accounting is to:

A Maximize revenue
B Safeguard assets, ensure financial reporting accuracy, and promote compliance with laws
C Reduce employee count
D Eliminate all errors

✓ Correct Answer: Option B

Internal controls (COSO framework): preventive and detective controls to ensure reliable financial reporting, operational efficiency, regulatory compliance, and asset safeguarding.

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