ITPEC IP April 2025 Question 64
ITPEC IP April 2025 — Question 64 of 100
Compliance with laws and regulations related to business operations — revising internal rules to follow updated industry safety standards supports compliance.
The manufacturer monitors external requirements and updates its own controls so business activities continue to satisfy the applicable safety rules. This is the compliance objective of internal control, even though compliance can also support effective operations and asset protection.
Answer (c)
Why not others:
- (a) concerns achieving operational objectives efficiently
- (b) concerns accurate and trustworthy financial statements
- (d) concerns safeguarding tangible and intangible assets
Key rule: Identify the direct purpose of the control: adapting internal standards to an external rule is primarily regulatory compliance.
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