(b) What are the six accounting objectives of an internal control system? (6 marks)

• Authorization - The objective is to ensure that all transactions are approved by responsible personnel by the specific or general authority before the transaction is recorded.
• Completeness - The objective is to ensure that no valid transactions have been omitted from the accounting records.
• Accuracy - The objective is to ensure that all valid transactions are accurate and consistent with the originating transaction data and that information is recorded promptly.
• Validity - The objective is to ensure that all recorded transactions fairly represent the economic events that occurred, are lawful and have been executed according to management's general authorization.
• Physical Safeguards & Security - The objective is to ensure that access to physical assets and information systems is controlled and properly restricted to authorized personnel.
• Error handling - The objective is to ensure that errors detected at any stage of processing receive prompt corrective action and are reported to the appropriate level of management.

(c) Identify an example of a specific objective that an organisation might have for each of the six answers you have provided in (b). You may choose examples from any of the business cycles that you have studied.