Question

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: Separates asset custody from accounting record access to prevent fraud.
• b. Independent internal verification: An internal auditor compares assets and records for accuracy.
• c. Documentation procedures: Prenumbered shipping documents ensure proper record - keeping and accountability.

Answer:

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