CRMA Practice Exam 2025 – Complete Certification Preparation

The main objective of internal control is to assure operational effectiveness and compliance. This means that internal controls are designed to help organizations achieve their goals by ensuring that operations run efficiently and effectively, resources are used optimally, and processes comply with applicable laws and regulations.

Operational effectiveness refers to the capability of an organization to achieve its strategic objectives while ensuring that its operations are efficient, reliable, and contribute to value creation. Compliance involves adhering to laws, regulations, and internal policies to minimize risks associated with non-conformance, such as financial losses and reputational damage.

While increasing sales and profits, enhancing employee performance, and evaluating external market forces are important aspects of a business strategy, they do not encompass the primary aim of establishing and maintaining an internal control system. Internal control primarily focuses on safeguarding assets, preventing fraud, ensuring the accuracy and reliability of financial reporting, and promoting operational efficiency and regulatory compliance. This comprehensive approach mitigates risks and supports overall business sustainability.