The principles of internal control include: ensure transactions and activities are authorized, maintain records, insure assets, separate recordkeeping and custody of assets, and perform internal and external audits.

Question

Quizplus · Accepted Answer

These are indeed the principles of internal control. Ensuring transactions and activities are authorized helps prevent fraud, maintaining thorough and accurate records makes it easier to track activity and quickly identify any errors or discrepancies, insuring assets protects against loss or damage, separating recordkeeping and custody of assets helps prevent any one person from having too much control or opportunity to misappropriate funds, and performing internal and external audits helps ensure compliance with regulations and identify any areas where controls may need to be strengthened.

The Principles of Internal Control Include: Ensure Transactions and Activities