Listed Below Are Examples of Several Internal Control Procedures

question 116

Essay

Listed below are examples of several internal control procedures.
Required: For the following internal control procedures,give the objective of the control:
a.The stock of unused checks is kept under lock and key.
b."Surprise" counts of cash funds are conducted periodically.
c.All purchases must be made by the purchasing department.
d.The accounting department matches invoices to copies of purchase orders.

---

Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good or service and the actual price they receive.

Producer Surplus

The difference between what producers are willing to accept for a good or service and what they actually receive in the market.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, indicating the utility gained from the purchase.

Price Ceiling

A government-imposed limit on how high a price can be charged on a product or service.