According to the COSO definition of safeguarding of assets
A. Controls over financial reporting are effective if they provide reasonable assurance that asset losses will not occur.
B. Controls over financial reporting are effective if they provide reasonable assurance that losses are properly reflected in the financial statements.
C. Controls over financial reporting are effective if they provide reasonable assurance that asset losses will not occur and that losses are properly reflected in the financial statements.
D. There is no way to create controls that will provide reasonable assurance that asset losses will not occur.
Answer: Controls over financial reporting are effective if they provide reasonable assurance that losses are properly reflected in the financial statements.
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