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A company's owner asks the bookkeeper why the firm should invest time in a system of internal control. Which statement best describes the purposes an internal control system is designed to serve?
A
Safeguarding assets against loss or theft, producing reliable accounting records, and promoting compliance with laws and management's policies
B
Guaranteeing that the financial statements contain no errors of any kind
C
Eliminating the need for an annual audit by an outside accountant
D
Ensuring that the company reports the lowest possible taxable income each year