List four examples of acceptable internal controls.
What will be an ideal response?
- Never allow a bookkeeper or person preparing the checks to sign checks or to sign on the account.- Have careful, unannounced, routine examinations of the books.- Partners should routinely read and examine all financial reports.- All checks should be stored in a locked cabinet.- Never let the person signing the checks reconcile the account.- Use check request forms.- Have guidelines for how the mail is opened and how checks will be deposited.- Use non accounting personnel to help with internal controls.- Require two signatures on checks over $5000.- Stamp invoices "canceled."- Have an audit prepared by a CPA every year.
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