The internal control procedures in Forestry 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. (b) A prenumbered shipping document is prepared for each shipment of goods to customers. (c) Each month, the assets on hand are compared to the accounting records by an internal auditor
The internal control procedures in Forestry 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. (b) A prenumbered shipping document is prepared for each shipment of goods to customers. (c) Each month, the assets on hand are compared to the accounting records by an internal auditor
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The internal control procedures in Forestry 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.
(b) A prenumbered shipping document is prepared for each shipment of goods to customers.
(c) Each month, the assets on hand are compared to the accounting records by an internal auditor
.
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