Question #1

Internal control procedures are important in every business; identify the seven broad principles of internal control. Explain why each is important and give examples of procedures in place to address the principles.

Question #2

Separation of duties is important in internal control procedures. Why should responsibility for related transactions be divided among different departments or individuals? Why should the person who keeps the records of an asset not be the person responsible for its custody? When merchandise is purchased, why are individual departments not allowed to directly deal with suppliers?