The internal control procedures in Dayton Company result in the following provisions.Identify the principles of internal control that are being followed in each case. (a) Employees who have physical custody of assets do not have access to the accounting records. Select the principle of internal control Human resource controlsSegregation of dutiesEstablishment of responsibilityPhysical controlsIndependent internal verificationDocumentation procedures (b) Each month, the assets on hand are compared to the accounting records by an internal auditor. Select the principle of internal control Establishment of responsibilityHuman resource controlsPhysical controlsIndependent internal verificationDocumentation proceduresSegregation of duties (c) A prenumbered shipping document is prepared for each shipment of goods to customers. Select the principle of internal control Human resource controlsIndependent internal verificationEstablishment of responsibilitySegregation of dutiesDocumentation proceduresPhysical controls
The internal control procedures in Dayton Company result in the following provisions.Identify the principles of internal control that are being followed in each case. (a) Employees who have physical custody of assets do not have access to the accounting records. Select the principle of internal control Human resource controlsSegregation of dutiesEstablishment of responsibilityPhysical controlsIndependent internal verificationDocumentation procedures (b) Each month, the assets on hand are compared to the accounting records by an internal auditor. Select the principle of internal control Establishment of responsibilityHuman resource controlsPhysical controlsIndependent internal verificationDocumentation proceduresSegregation of duties (c) A prenumbered shipping document is prepared for each shipment of goods to customers. Select the principle of internal control Human resource controlsIndependent internal verificationEstablishment of responsibilitySegregation of dutiesDocumentation proceduresPhysical controls
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The internal control procedures in Dayton Company result in the following provisions.
Identify the principles of internal control that are being followed in each case.
| (a) |
Employees who have physical custody of assets do not have access to the accounting records.
|
Select the principle of internal control Human resource controlsSegregation of dutiesEstablishment of responsibilityPhysical controlsIndependent internal verificationDocumentation procedures | ||
|---|---|---|---|---|
| (b) |
Each month, the assets on hand are compared to the accounting records by an internal auditor.
|
Select the principle of internal control Establishment of responsibilityHuman resource controlsPhysical controlsIndependent internal verificationDocumentation proceduresSegregation of duties | ||
| (c) |
A prenumbered shipping document is prepared for each shipment of goods to customers.
|
Select the principle of internal control Human resource controlsIndependent internal verificationEstablishment of responsibilitySegregation of dutiesDocumentation proceduresPhysical controls |
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