Two of your friends from high school will soon realize their lifetime dream of opening an English-style pub. They recently spoke with their accountant who indicated that they should ensure that they implement some strong controls. They have no idea what the accountant was talking about. They know you are studying accounting and they have come to you for advice about what their accountant meant.
Required
(a) Explain the concept of internal controls.
(b) List four things your friends should do to ensure that they create a strong control environment.
(c) List eight control activities they should have in place. Describe how each activity is relevant to their business.