A member of the board of directors has just returned from a meeting with the external auditors concerning the company's internal controls. The director noticed that the auditors stressed the importance of cash control and wants you, the company controller, to explain internal controls for cash.
Required:
a. Define internal control and explain its purpose.
b. Identify at least four typical internal controls over cash.

Question

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The Answer of A member of the board of directors has just returned from a meeting with the external auditors concerning the company's internal controls. The director noticed that the auditors stressed the importance of cash control and wants you, the company controller, to explain internal controls for cash.
Required:
a. Define internal control and explain its purpose.
b. Identify at least four typical internal controls over cash.

A Member of the Board of Directors Has Just Returned