Describe an Internal Control That Would Prevent an Employee from Stealing

question 64

Essay

Describe an internal control that would prevent an employee from stealing a computer and then reporting it as scrapped.

---

Definitions:

Comprehensive Income

The total change in equity for a reporting period other than transactions from owners, encompassing all gains and losses that are not recognized in the profit or loss.

Retained Earnings Restrictions

Limitations or constraints placed on the amount of retained earnings that can be used for distribution to shareholders, often due to legal, contractual, or company policy reasons.

Treasury Stock

Shares of a company's own stock that it has reacquired from shareholders, not considered a part of the float and not having voting power or dividend rights.

Long-term Debt Contracts

Agreements for borrowing funds that are to be repaid over a period longer than one year.