Chapter 8, Problem 4QS

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. Internal Control system has its five integral components those together works 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 of false