Question

policies
current attempt in progress
the internal control procedures in dayton 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. each month, the assets on hand are compared to the accounting records by an internal auditor.
c a prenumbered shipping document is prepared for each shipment of goods to customers.

Explanation:

• a. Segregation of duties: Physical custody and accounting record - keeping are separated.
• b. Independent internal verification: An internal auditor compares assets and records.
• c. Documentation procedures: Prenumbered shipping documents are used.

Answer:

a. Segregation of duties
b. Independent internal verification
c. Documentation procedures