A number of importani parts of internal accounting control are listed below:

1. Internal auditing.

2. Reasonable assurance.

3. Segregation of functions.

4. Organization structure.

5 . Documentation procedures.

6. Limitations.

7. Independent internal verification.

8. Personnel.

9. Physical controls.

10. Authorization procedures.

11. Methods of data processing.

12. Budgets.

13. Accounting records and procedures.

14. Sound practices.

15. Management responsibility.

Required:

a. Classify each item as either (1) part of the internal accounting control environment, (2) internal control principle, or (3) internal control concept.

b. Briefly discuss the basic differences among the three aspects of internal accounting control mentioned in a above.