What is one of the main objectives of the internal control system?

A primary objective of an internal control system is to provide reasonable assurance in achieving the organization's objectives. This encompasses various aspects, including the effectiveness and efficiency of operations, the reliability of financial reporting, and compliance with applicable laws and regulations. An effective internal control system helps organizations manage risks, thereby increasing the likelihood of reaching their goals while safeguarding resources.

Implementing a robust internal control framework allows management to identify potential risks and establish policies and procedures that mitigate those risks, thereby promoting accountability and transparency. While it can contribute to minimizing operational costs, enhancing stakeholder engagement, and may support accurate profit forecasting, these are not the central focus of internal controls. The overarching aim remains to ensure that the organization meets its objectives through sound management practices and risk management.