Chapter 8, Problem 3QS

To determine

Concept Introduction:

Internal Control:

Internal controls are policies and procedures implemented by an organization to attain operational goals and maintain the integrity of accounting. The Internal Control system has five integral components that together work an effective internal control.

Principles of Internal Control:

Principles of Internal Control are the ways to maintain proper internal controls in an organization. These principles are as follows:

• Establishing Responsibilities
• Maintaining Records
• Safeguards of assets
• Segregation of Duties
• Compulsory Employees Job Rotation
• Split-Related Party Responsibility
• Using the Technology for Controls
• Conducting timely Independent Reviews

To identify:

If the given statement is true or false