Exercise 7-1 (Essay)

Eve Herschel is the owner of Herschel's Pizza. Herschel's is operated strictly on a carryout basis. Customers pick up their orders at a counter where a clerk exchanges the pizza for cash. While at the counter, the customer can see other employees making the pizzas and the large ovens in which the pizzas are baked.

Identify the six principles of internal control and give an example of each principle that you might observe when picking up your pizza.