The matter listed below are always included in the internal control of a firm. You are required to explain the purpose of each of the items listed as (a), (b) and (c) below. Indicate the compliance tests you would carry out in order to ensure that the intended controls were operating properly.


a) A requirement that mail is opened by two responsible employees who must promptly
make listings of all receipts.
(7 marks)

b) A rule that a fixed asset register must be maintained and updated promptly. (6 marks)

c) A requirement that a bank reconciliation statement is prepared on monthly basis.