The principles of internal control include:
A) Maintain minimal records.
B) Bond all employees.
C) Separate recordkeeping from custody of assets.
D) Use only computerized systems.
E) Require automated sales systems.

Question

Quizplus · Accepted Answer

The principle of separating recordkeeping from custody of assets ensures that there is an independent check on the accuracy and reliability of records. This helps prevent fraud and errors. The other options provided are incorrect. Maintaining minimal records is not a good internal control practice as it can result in incomplete or inaccurate records. Bonding all employees may be costly and unnecessary for all employees. Using only computerized systems and requiring automated sales systems may not be feasible for all businesses and may not address all internal control needs.

The Principles of Internal Control Include