According to the GAO, internal control is a process used by management to

Definition of Internal Control (According to GAO):

Internal control is a process implemented by management to provide reasonable assurance that the

organization will achieve its objectives in:

Operations (effectiveness and efficiency).

Reporting (reliable and accurate financial and non-financial reporting).

Compliance (adherence to laws and regulations).

Explanation of Answer Choices:

A . Help an entity achieve its objectives: Correct. This is the primary purpose of internal controls.

B . Design an ERM system: Incorrect. Enterprise Risk Management (ERM) is broader than internal

control and includes risk strategy and appetite.

C . Set the tone at the top: Incorrect. While the tone at the top is part of the control environment, it

is not the full scope of internal control.

D . Develop a strategic plan: Incorrect. Internal control supports strategic plans but is not directly

involved in developing them.

Reference:

GAO, Standards for Internal Control in the Federal Government (Green Book).

COSO, Internal Control - Integrated Framework.