Internal Control Principles Pampillonia Fruits Market took the following actions to improve internal controls. For each of the following actions, identify the internal control principle the company followed. a. The recordkeeper is prohibited from having control over cash. b. An insurance (bonding) policy is purchased against losses from theft by a cashier. c. Each cashier is designated a specific cash drawer and is solely responsible for cash in that drawer. d. Detailed records of inventory are kept to ensure items lost or stolen do not go unnoticed. e. Digital time clocks are used to register which employees are at work at what times. f. External auditors are regularly hired to evaluated internal controls. 1

Internal Control Principles Pampillonia Fruits Market took the following actions to improve internal controls. For each of the following actions, identify the internal control principle the company followed. a. The recordkeeper is prohibited from having control over cash. b. An insurance (bonding) policy is purchased against losses from theft by a cashier. c. Each cashier is designated a specific cash drawer and is solely responsible for cash in that drawer. d. Detailed records of inventory are kept to ensure items lost or stolen do not go unnoticed. e. Digital time clocks are used to register which employees are at work at what times. f. External auditors are regularly hired to evaluated internal controls. 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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