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:

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Predefined or customizable formats applied to cells in a spreadsheet to ensure consistency in appearance and formatting.

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A collection of predefined formatting options in software like Microsoft Word that allow for quick application of complex formatting to text.

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A mode in text editors and word processors that allows users to insert text at the cursor position without overwriting existing text.

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A text-editing mode in which new characters typed by the user replace the characters directly in front of the cursor, instead of being inserted.