Questions for a carpentry business. Building houses and such. also selling merchidise that says the same of the company.

1. Out of the seven principles of Internal Control, pick two that you feel most strongly about due to the nature of your business. Explain their significance to your business.
2. Explain two of the limitations to internal control and how they specifically relate to your business.
3. Specifically explain what variations of "Cash" and "Cash Equivalents" you would expect your business to have as assets.
4. Who would be managing the cash at your business? Explain the top strategies that person would need to use to have effective cash management.
5. When establishing a petty cash fund, what amount do you feel is sufficient for your type of business? What controls would be put in place to effectively manage its use?
6. What is the purpose of creating a bank reconciliation?
7. Specific to your type of business, what types of fraud would be most probable?
8. Explain two reasons why your bank statement and your checking account balances could be different.