Internal Control: Internal control refers to the policies, and plans of the business organization along with other measures with a view to safeguard its assets, encourage the employees to adhere to the plans, to improve on the operational efficiency, and to ensure correct and reliable accounting information. Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. The following are the some of the internal control procedures: Competent personnel, rotating duties, and mandatory vacations Separating responsibilities for related operations Separating operations, custody of assets, and accounting Proofs and security measures To state: Whether R’s handling of internal control situations are acceptable or not.

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Ramona's clothing has a retail store specializing in women's clothing. the store has established a liberal return policy for the holiday season in order to encourage gift purchases.any item purchased or November and December may be returned through January 31st, with a receipt, for cash or exchange. if the customer does not have a receipt cash will still be refunded for any item under $75. If the item is more than $75, a check is mailed to the customer. whenever an item is returned, a store clerk completes a return slip, which the customer signs. the return slip is placed in special box. The store manager visits the return counter approximately once every 2 hours to authorize the return slips clerks are instructed to place the returned merchandise on the proper rack on the cell and floor as soon as possible. This year, returns at Ramona's clothing have reached an all-time high. There are large number of returns under $75 with receipts. A. How can sales clerks employed at Ramona's…

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Chapter 8, Problem 8.3EX

To determine

Internal Control: Internal control refers to the policies, and plans of the business organization along with other measures with a view to safeguard its assets, encourage the employees to adhere to the plans, to improve on the operational efficiency, and to ensure correct and reliable accounting information. Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

The following are the some of the internal control procedures:

Competent personnel, rotating duties, and mandatory vacations

Separating responsibilities for related operations

Separating operations, custody of assets, and accounting

Proofs and security measures

To state: Whether R’s handling of internal control situations are acceptable or not.

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