Which of the following best describes the purpose of internal control?

The choice that accurately captures the purpose of internal control is focused on safeguarding assets and improving accounting reliability. Internal control systems are designed to ensure that an organization’s resources are protected from theft, fraud, or misuse, thereby safeguarding its assets. By implementing effective internal controls, organizations can also enhance the accuracy and reliability of their financial reporting. This means that the financial statements accurately reflect the financial status of the company, which is crucial for decision-making by management and stakeholders.

The other options fail to encompass the comprehensive objective of internal control. While increasing sales revenue and enhancing customer satisfaction are essential goals for a business, they are not the primary focus of internal control systems. Additionally, reducing tax liabilities may be a financial goal, but it does not relate directly to the function of internal controls, which is primarily concerned with the integrity of financial information and the protection of assets.