The two internal controls that should be used and in that order are :
1st Separation of duties
Separation of duties is the means by which no one person has sole
control over the lifespan of a transaction. Ideally, no one person
should be able to initiate, record, authorize and reconcile a
Reconciliation is the process of comparing transactions and activity to
supporting documentation. Further, reconciliation involves resolving
any discrepancies that may have been discovered.
Once separation of duties is applied you have a frame to assign blame for errors
Then reconciliation will resolve those errors and clarify if they where intentional or not
Apr 7th, 2015
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