The internal control procedures in Forestry Company result in the following provisions. Identify the principles of internal control that are being followed in each case. (a) Employees who have physical custody of assets do not have access to the accounting records. (b) A prenumbered shipping document is prepared for each shipment of goods to customers. (c) Each month, the assets on hand are compared to the accounting records by an internal auditor

College Accounting, Chapters 1-27
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ISBN:9781337794756
Author:HEINTZ, James A.
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Chapter7A: Internal Controls
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The internal control procedures in Forestry Company result in the following provisions. Identify the principles of internal control that are being followed in each case.

(a) Employees who have physical custody of assets do not have access to the accounting records.

(b) A prenumbered shipping document is prepared for each shipment of goods to customers.

(c) Each month, the assets on hand are compared to the accounting records by an internal auditor

 .

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