Chapter 1.A, Problem 9Q

To determine

Internal control: Internal controls are processes or polices designed by the management to provide assurance that the objectives will be achieved in an effective and efficient way.

Sequential prenumbering: Sequential prenumbering means issuance and printing of serial numbers on documents such as sales invoices, cash books, purchase orders etc. It is a part of the internal control function.

The reason for using sequential prenumbering for documents such as checks, sales invoices, and purchase orders by companies.