Chapter 7, Problem 7.1APR

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 internal control principles:

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

To indicate:

1. (1) Whether procedures of internal control over cash represents strength.
2. (2) Whether procedures of internal control over cash represents weakness.