ECONOMICS

Detailed explanation-1: -A good system of internal control requires that the job order cost sheet be destroyed as soon as the job is complete. Requisitions for direct materials are posted daily to the individual job cost sheets.

Detailed explanation-2: -Internal controls ensure that the financial statements published are correct. The only role of internal controls is to protect customer data. Internal controls and company policies are important to protect and safeguard assets and to protect all company data and are designed to protect the company from fraud.

Detailed explanation-3: -The framework of a good internal control system includes: Control environment: A sound control environment is created by management through communication, attitude and example. This includes a focus on integrity, a commitment to investigating discrepancies, diligence in designing systems and assigning responsibilities.

Detailed explanation-4: -Answer and Explanation: The correct answer is option D. A strong internal control system provides reasonable assurance that the objectives of a company will be accomplished. Sound internal control can provide a reasonable assurance that the company’s objectives can be accomplished.