Chapter 10, Problem 10.15EX

To determine

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the principles of internal control:

• Authorizing the responsibility
• Segregation of duties
• Documenting and recording transactions
• Physical controls
• Periodic independent verification
• Human resource controls

Payroll: The total payment that a company is required to pay to its employee for the services received is called as payroll.

To State: Whether each of the procedures is appropriate or inappropriate, after considering the principles of internal control.