Internal control policies and procedures vary from company to company based on many aspects, such as the type of business and its size. Internal controls have seven main principles which they are built around:

Establish responsibilities

Maintain adequate records

Ensure assets and bond key employees

Separate record-keeping from custody of assets

Divide responsibility for related transactions

Apply technological controls

Perform regular and independent reviews

These principles help companies control multiple aspects of the business, especially their cash. Cash is an important portion of any business; there is even a financial statement dedicated to tracking the company's cash flows.

In your post responding to the following:

Define Petty Cash and how a petty cash system operated and controlled.

Discuss which internal control principles you think are the most important to safeguard petty cash and explain why

Explain the limitations that internal controls have on petty cash.