Principles of internal control include:
A) Record purchases using the gross method.
B) Divide responsibilities for related transactions.
C) Perform regular and independent reviews.
D) Divide responsibilities for related transactions and perform regular and independent reviews.
E) All of the above

Question

Quizplus · Accepted Answer

The principles of internal control include dividing responsibilities for related transactions and performing regular and independent reviews. Additionally, recording purchases using the gross method can be a helpful control but it is not a principle of internal control on its own. Therefore, choices A and B are not the best choices. Choice C is also a good control practice, but combining it with dividing responsibilities is even more effective. Therefore, the best choice is D. Choice E, "All of the above," is not the best answer because it includes choice A, which is not a principle of internal control.

Principles of Internal Control Include