In the framework of Japan's internal control reporting system under the Financial Instruments and Exchange Act (J-SOX), which of the following is one of the four objectives of internal control?

Answer: C. Safeguarding of assets

In the J-SOX framework, the objectives of internal control are four: effectiveness and efficiency of operations, reliability of reporting (including the reliability of financial reporting), compliance with laws and regulations related to business activities, and safeguarding of assets. This adds safeguarding of assets to the three objectives (operations, reporting and compliance) of the U.S. COSO framework. Increasing market share and speeding up development are business goals or strategies, not objectives of internal control.

• A. This is one of the business goals, not an objective of internal control.
• B. This is a goal related to business strategy, not an objective of internal control.
• C. Correct. Ensuring that assets are acquired, used and disposed of under proper procedures and approval is one of the objectives of internal control.