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.