Question

What principles of internal control apply to most business?

Answer 1

The principles of internal control that apply to most businesses are segregation of duties, authorization and approval, and physical and logical access controls.

Step-by-step explanation:

The principles of internal control that apply to most businesses are:

1. Segregation of duties: This principle involves dividing responsibilities among different individuals to prevent fraud or errors. For example, the person who handles cash should be different from the person who records transactions.
2. Authorization and approval: This principle ensures that all transactions and activities are appropriately authorized and approved by relevant individuals, such as managers or supervisors.
3. Physical and logical access controls: These controls limit access to sensitive information, assets, and systems only to authorized individuals. This can include measures like passwords, security systems, or restricted areas.