Three objectives of a company's internal control system should be safeguarding assets, checking the accuracy and reliability of accounting data, and promoting operational efficiency. A fourth objective of a company's internal control system should be:

1.Preventing embezzlement of assets
2.Encouraging adherence to prescribed managerial policies
3.Avoiding the payment of overtime to company employees
4.Revising standards for production costs on a weekly basis

I am thinking it should be 2, but am not certain. Can anyone assist?

I agree -- 2 is the best answer.

Thank you.

You're on the right track! The first three objectives you mentioned (safeguarding assets, checking accuracy and reliability of accounting data, and promoting operational efficiency) are indeed commonly recognized objectives of a company's internal control system.

Now, let's consider the fourth objective options:

1. Preventing embezzlement of assets: This objective aligns with the first objective of safeguarding assets. Embezzlement refers to the act of misappropriating or stealing assets, so preventing it would help protect the company's resources.

2. Encouraging adherence to prescribed managerial policies: This objective focuses on ensuring that employees follow the established guidelines and procedures set by management. It can help maintain consistency and fairness in decision-making and operations.

3. Avoiding the payment of overtime to company employees: This objective relates to financial control and cost management. By avoiding unnecessary overtime payments, the company can control labor costs and promote efficient use of resources.

4. Revising standards for production costs on a weekly basis: This objective appears to be related to cost control and operational efficiency. By revising production cost standards regularly, the company can ensure accuracy in budgeting and performance evaluation.

Considering these options, it is clear that option 2, "Encouraging adherence to prescribed managerial policies," is the most appropriate choice for the fourth objective of a company's internal control system. This objective focuses on promoting compliance with established policies, which is crucial for maintaining consistency and accountability within the organization.