You Have Documented the Internal Control System for Cash and Have

question 13

Essay

You have documented the internal control system for cash and have written a memo describing the controls that are in place.There are several internal control procedures available to management in designing an internal control system.Identify the internal controls that management has used based on the documentation provided below.Write a short description after each identified control indicating what audit procedures you would use to test the control.

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Definitions:

Adverse Selection

A situation in consumer choice in which asymmetric information leads to the selection of undesirable alternatives by one party.

Fire Insurance

A type of property insurance that covers damage and losses caused by fire, providing compensation to policy holders for the repair or replacement of affected property.

Low-risk

Refers to investments or economic decisions that have a low probability of resulting in financial loss.

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A form of communication intended to promote or sell a product, service, or idea to a target audience.