Chapter 4 - Internal Control

Question 1

What are some methods to protect a businesses assets from employees?

Answer 1

Some methods to protect assets from employees is:
Rotation of duties.
Seperation of duties.
Established lines of responsibility.
Appropriate security.
Installation of electrical devices.
Adequate recording and documentation systems.
Installisation of verification and checking processes.
The existence of authorisation process
Checking accounts.
Employment of reliable staff.

Question 2

What do businesses try to protect from employees?

Answer 2

Businesses try to protect their cash, inventory, accounts receivable and accounts payable.