Monday, January 18, 2010

Listed below are several examples of internal control procedures.?

Required: For the following internal control procedures, give the reason or objective of the control:





c. The cashier deposits cash and mails checks to vendors, but does not record any information in the accounting system.


Reasons for controls:





d. The employee performing the bank reconciliation does not perform any cash handling or recording activities.


Reasons for controls:Listed below are several examples of internal control procedures.?
Both of these procedures have the same reason or objective:





Those who perform accounting functions must be separate from those who handle money. Without such controls, it would be easy for employees to imbezzle and ';cover their tracks'; with falsified records.

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