Brief Exercise

The internal control procedures in Edmiston Company make the following provisions. Identify the principles of internal control that are being followed in each case.

(a) Employees who have physical custody of assets do not have access to the accounting records.

(b) Each month, the assets on hand are compared to the accounting records by an internal auditor.

(c) A prenumbered shipping document is prepared for each shipment of goods to customers.

Answer choices are:

-Human resource controls

-Physical controls

-Segregation of duties

-Independent Internal Verification

-Doumentation procedures

-Establishment of responsibility