Internal control systems include policies and procedures designed to provide reasonable assurance that the corporation’s objectives are being met in three areas:

a. Effectiveness and efficiency of operations

b. Reliability of financial reporting

c. Compliance with applicable laws and regulations

Like any other business, a bookstore uses internal control activities to meet its objectives in these three areas.

Required:

Attempt to name a control for each area and describe how the control helps accomplish the store’s objectives in these areas.