Exercise $6-2($Algo$)$ Identifying Internal control principles LO C$1$

Whole Fruits Market took the following actions to improve internal controls. For each of the following actions, identify the internal control principle the company followed.

a$.$ Personal ID cards are used to limit access to only authorized employees.

b$.$ The company divides responsibility for a transaction between multiple departments.

c$.$ Each cashier is designated a specific cash drawer and is solely responsible for cash in that drawer.

d$.$ Purchased an insurance $($bonding$)$ policy against losses from theft by a cashier.

e$.$ To ensure equipment theft does not go undetected, detailed accounting records are kept.

f$.$ The company's internal auditors frequently assess the performance of internal controls.

Apply technological controls

Divide responsibility for related transactions

Establish responsibilities

Insure assets and bond key employees