All internal contt

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The further duties are separated, the less chance any single employee has of committing fraudulent acts. The seven internal control procedures are separation of duties, access controls, physical audits, standardized documentation, trial balances, periodic reconciliations, and approval authority. As a small-business owner, Ingram regularly confronts modern issues in management, marketing, finance and business law. Physical audits include hand-counting cash and any physical assets tracked in the accounting system, such as inventory, materials and tools. Physical counting can reveal well-hidden discrepancies in account balances by bypassing electronic records altogether. Robust access tracking can also serve to deter attempts at fraudulent access in the first place. Internal control procedures in accounting can be broken into seven categories, each designed to prevent fraud and identify errors before they become problems.

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