Internal Controls

Question 1

What are the 2 categories of internal controls?

Answer 1

administrative and accounting

Question 2

The objectives of internal controls are to:

Answer 2

ensure accurate and reliable recording of financial information
ensure that resources are being used efficiently
promote compliance with management’s policies and procedures
safeguard the organization’s assets
promote the accomplishment of the organization’s goals and objectives

Question 3

What are the principles of internal control?

Answer 3

establishment of responsibility
segregation of duties
Independent internal verification
documents procedures or documentation
physical, mechanical and electronic controls

Question 4

What are some additional controls?

Answer 4

fidelity bond, job rotation and mandatory vacation