Internal controls, like policies and procedures, play a crucial role in ensuring the accuracy of individual transactions and, consequently, the overall reliability of account balances. These controls help prevent errors or fraud in day-to-day financial activities, impacting the overall quality of financial statements. Auditors rely on evidence from these internal controls to gauge the trustworthiness of transactional data. By scrutinizing individual transactions, auditors gain insights into the specifics of financial activities, aiding in their assessment of the fairness of account balances. In essence, a solid connection between internal controls, transactions, and account balances is vital for auditors in validating the accuracy of financial statements.