Ask Question
23 October, 22:42

Identify the principle of internal control to each of the following cases. 1. Cash is locked in a safe overnight. 2. Employees who receive shipments of goods do not have access to the accounting records for merchandise. 3. Shipping documents are pre-numbered. 4. The bookkeeper does not have physical custody of assets. 5. Only the treasurer of the company can sign checks.

+5
Answers (1)
  1. 24 October, 02:03
    0
    1. Physical control

    2. Segregation of duties

    3. Documentation

    4. Physical control

    5. Authorization

    Explanation:

    1. Cash is locked in a safe overnight.

    Principle of internal control: Physical control

    Physical control: Only authorized persons should have access to certain assets.

    2. Employees who receive shipments of goods do not have access to the accounting records for merchandise.

    Principle of internal control: Segregation of duties

    Segregation of duties: There should be different personnel for different aspects of the transactions.

    3. Shipping documents are pre-numbered.

    Principle of internal control: Documentation

    Documentation: Proper documentation should be maintained for the transactions.

    4. The bookkeeper does not have physical custody of assets:

    Principle of internal control: Physical control

    Physical control: Only authorized persons should have access to certain assets.

    5. Only the treasurer of the company can sign checks.

    Principle of internal control: Authorization

    Authorization: The transactions are authorized by the responsible/authorized persons.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Identify the principle of internal control to each of the following cases. 1. Cash is locked in a safe overnight. 2. Employees who receive ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers