List the Internal Control Objectives Illustrated by the Following

question 90

Essay

List the internal control objectives illustrated by the following:
(a)Keeping the inventory storeroom locked
(b)Counting the inventory at the end of the accounting period and comparing it with the inventory ledger clerk's records
(c)Using subsidiary ledgers and a perpetual inventory system

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Definitions:

Provincial Tax Brackets

These refer to the range of income segments taxed at different rates by provincial governments in countries like Canada, where taxation powers are shared between federal and provincial authorities.

Net Working Capital

The difference between a company’s current assets and its current liabilities, indicating the liquidity of the business.

Current Assets

Assets that a company expects to convert into cash within one year or one business cycle, whichever is longer.

Current Liabilities

Short-term financial obligations or debts of a company, typically due within one year.