Economics · Auditing
Which of the following best defines internal control?
- 1Procedures designed to guarantee profit maximisation.
- 2A system implemented to ensure orderly and efficient operations, reliability of records, and compliance with laws.✓
- 3The use of external auditors to check books of accounts.
- 4A policy for staff recruitment.
Correct answer
A system implemented to ensure orderly and efficient operations, reliability of records, and compliance with laws.
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