Identify Which Principle of Internal Control Is Being Followed in Each

question 212

Essay

Identify which principle of internal control is being followed in each of the following cases.
1. Warehouse employees do not have access to the accounting records.
2. Pre-numbered shipping documents are prepared for each shipment of goods.
3. The locked warehouse is accessible only by warehouse employees with keys.

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Definitions:

Close Substitutes

Products or services that can be used in place of one another with little difference in satisfaction for the consumer, leading to a high cross-elasticity of demand.

Supply

The total amount of a good or service that is available for purchase at any given price level.

Antiques

Items of high value due to their considerable age and historical significance, often collected or used for investment.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.