Question

Q1-

A company wants to implement good internal control. What are the policies and procedures you can suggest to minimize human frauds and errors? (1Mark)

I know the answer is existed here in Chegg. However, I want a different and a unique answer and I want it simple to understand. Please use your OWN words.

Thank you.

Answer 1

Following are the Polices and Procedures

1) Administrative and Finanace powers should be distributed among different personnel

2) A single person should not have independent control over the important aspects of business

3) Person having physical custody of assets should not have access to accounts or records

4) All acts of one person should come under the review of another

5) Duties of Staff should be changed from time to time without previous notice

6) To prevent misappropriation of cash , mechanical devices can be employed

7) Timely review of procedures enables the management to change them if need arises

8) During Stock taking at end of accounting period trading activities should be suspended if possible

9) For each important asset accounting control should be periodically checke