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
Requirement-1:
To Indicate:
The reason how cash theft can be identified using the sales and inventory records.
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.
Requirement-2:
To Indicate:
How an employee can be able to steal cash from sales.
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.
Requirement-3:
To Indicate:
A control procedure to prevent the theft of cash by the employees.
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Chapter 4 Solutions
Cornerstones of Financial Accounting
- Petty cash is used to ________. A. avoid having to use checks frequently B. make small payments C. avoid having to retain receipts because the amounts are very small D. avoid having to get approvals due to the small amount of cash being paidarrow_forwardWhat is the advantage of using technology in the internal control system? A. Passwords can be used to allow access by employees. B. Any cash received does not need to be reconciled because the computer tracks all transactions. C. Transactions are easily changed. D. Employees cannot steal because all cash transactions are recorded by the computer/cash register.arrow_forward
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