A system of internal control is intended to keep assets – such as cash – safe and enhance the accuracy and reliability of the accounting records. Independent internal verification and segregation of duties are, arguably, the most important internal control procedures to accomplish both. With respect to internal control over cash:

a. (1) What is independent internal verification (be sure to describe the phrase in your own words)

(2) Discuss how companies should conduct independent internal verification to promote internal control over cash?

b. (1) What is segregation of duties (be sure to describe the phrase in your own words)

(2) Discuss how companies should “segregate” cash-handling duties?

c. How do independent internal verification and segregation of duties likely differ in your project company, as compared to a very small company (e.g., local gift shop with a single location/store)

Answer rating: 100% (QA)

1 Independent Internal Verification Independent internal verification involves the review comparison and reconciliation of data prepared by employees a Verification should be made periodically or on a ... View the full answer