Internal Control: The internal control refers to the plan of a company. Implementation of effective internal control system is necessary for success of any business enterprise. Thus, internal control helps: To promote the operational efficiency. To encourage company policies and procedures regarding adherence. To minimize the errors and theft happening in the company. To enhance the accuracy and reliability of the accounting data. Petty Cash: Petty cash refers to the cash reserves available with the firm to make small payments and purchases. To Discuss : The internal control procedures of Company GK, related to cash disbursements, noting both weaknesses and strengths.

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Chapter 4, Problem 4.7E

To determine

Internal Control: The internal control refers to the plan of a company. Implementation of effective internal control system is necessary for success of any business enterprise. Thus, internal control helps:

To promote the operational efficiency.

To encourage company policies and procedures regarding adherence.

To minimize the errors and theft happening in the company.

To enhance the accuracy and reliability of the accounting data.

Petty Cash: Petty cash refers to the cash reserves available with the firm to make small payments and purchases.

To Discuss: The internal control procedures of Company GK, related to cash disbursements, noting both weaknesses and strengths.

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