Question

identify the other control procedures usually found in a companys system of internal control besides separation of duties, and tell why each is important. control procedure why is it important? proper approvals adequate records limited access comparison + compliance monitoring control environment

Explanation:

• Proper approvals: Ensures that transactions are authorized by the appropriate individuals. This helps prevent unauthorized or improper transactions, reducing the risk of fraud and errors. For example, a manager approving a large purchase order ensures that the company is only making necessary and budgeted - for expenditures.
• Adequate records: Provide a trail of transactions. This is important for financial reporting, auditing, and decision - making. Accurate records allow for the calculation of profits and losses, assessment of the company's financial position, and can be used to trace back any discrepancies.
• Limited access: Restricts who can access assets (physical like inventory or cash, or digital like accounting software). By limiting access, the risk of theft (physical assets) or unauthorized changes to financial data (digital assets) is reduced. For instance, only a few employees having access to the cash register reduces the chance of cash being misappropriated.
• Comparison + compliance monitoring: Compares actual results (e.g., financial statements, inventory levels) with expected results (budgets, standards). It helps in identifying variances, whether due to inefficiencies, errors, or fraud. Compliance monitoring ensures that the company is following laws, regulations, and its own internal policies.
• Control environment: Sets the tone for the organization. A strong control environment, with ethical leadership, proper organizational structure, and a focus on internal control, encourages employees to follow control procedures. It creates an atmosphere where internal control is seen as important for the overall success and integrity of the company.

Answer:

• Proper approvals: Prevents unauthorized transactions, reduces fraud/error risk.
• Adequate records: Facilitates reporting, auditing, and decision - making.
• Limited access: Reduces theft (physical/digital assets) risk.
• Comparison + compliance monitoring: Identifies variances (inefficiencies/errors/fraud), ensures compliance.
• Control environment: Sets ethical tone, encourages control procedure follow - through.