6 Principles Of Internal Control Activities

assigning responsibility to specific employees. Control is most effective when only one person is responsible for a given task

Different individuals should be responsible for related activities. The responsibility for record keeping for an asset should be separate from the physical custody of an asset

should control systems should require that employees promptly forward source documents for accounting entries to the accounting department. This control measure helps to ensure timely recording of the transactions

relates to the safeguarding of assets and enhance the accuracy and reliability of the accounting records

Companies should verify records periodically or on a surprise basis, An employee who is independent of the personnel responsible for the information should make the verification, Discrepancies and exceptions should be reported to a management level that can take appropriate corrective action

Companies should bond employees who handle cash, rotate employees duties and require employees to take vacations, and conduct thorough background checks