CASE STUDY 9 - CASH AND ASSET CONTROLS From the work Phuong had you complete on his receivables accounts, Phuong has now become very aware of how important it is to manage and protect his assets. Phuong would like some more information on what can be done to protect his assets in general. Required 1. Explain to Phuong what an internal control system is and discuss the major principles that need to be applied for this type of system to be effective. I'm looking for students to draw these ideas straight from chapter 10, specifically pages 429 430. The basic idea of a internal control system being and practices, policies, procedures that are put in place by an organisation to control its activities needs to be communicated. More details can be added by using examples from the list given on page 429. It would be good for students to highlight these controls can be broken into administrative and accounting controls, and that it is the latter we will be focussing on. The principles to be discussed begin on the bottom of page 429 and continue to page 430. Students need to do more than simply list these. They need to discuss what these principles are trying to achieve and the potential impacts they have on the system. There is no need to discuss all of these in detail as some of them are interrelated but to achieve full marks they need to communicate the overall idea of control being achieved through a system