A Member of the Board of Directors Has Just Returned

question 8

Essay

A member of the board of directors has just returned from a meeting with the external auditors concerning the company's internal controls. The director noticed that the auditors stressed the importance of cash control and wants you, the company controller, to explain internal controls for cash.
Required:
a.Define internal control and explain its purpose.
b.Identify at least four typical internal controls over cash.

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Definitions:

Carroll Izard

An American psychologist known for his contributions to the understanding of emotions, including the development of the Differential Emotions Theory.

Basic Emotions

Fundamental emotions that are universally experienced by humans, such as joy, sadness, fear, disgust, surprise, and anger.

Lust

Lust is an intense desire or craving, often used to describe a strong sexual attraction towards someone.

Greed

An excessive desire for more of something than is needed, often related to wealth, power, or food.