Chapter 8, Problem 5E

To determine

Internal Control:

Internal control can be defined as a process to ensure achievement of the objectives of an organization in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. The internal controls are framed in an organization to eliminate the internal control deficiencies of the organization.

To determine: Whether the given procedures are an example of good internal control or of weak internal control and indicate which internal control principle is being followed.