BE8-1 Jim Gaffigan has prepared the following list of statements about internal control.

1. One of the objectives of internal control is to safeguard assets from employee theft, robbery, and unauthorized use.

2. One of the objectives of internal control is to enhance the accuracy and reliability of the accounting records.

3. No laws require U.S. corporations to maintain an adequate system of internal control.

Instructions Identify each statement as true or false. If false, indicate how to correct the statement.

BE8-2 Heather Bailiff is the new owner of Ready Parking. She has heard about internal con¬

trol but is not clear about its importance for her business. Explain to Heather the two purposes of internal control and give her one application of each purpose for Ready Parking.