question archive Identify three or more internal controls that should be implemented by your business
Identify three or more internal controls that should be implemented by your business
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Identify three or more internal controls that should be implemented by your business.
- a. Estimate the cost of each control.
- b. Identify the beneficial impact of each control
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Some internal controls for a small business that can be implemented are:
| Internal Controls | Costs | Benefits |
| 1. Review the figures on a regular basis. |
- May be time consuming. - May result in inefficiencies. |
- Regular reviews reveal discrepancies. - Variance analysis ensure all transactions are legitimate. - Aids in monitoring performance. |
| 2. Segregation of duties | - More costly, since this entails additional labor cost.. |
- Checks and balances ensure funds are always deposited and disbursed appropriately. - Segregation of duties will ensure that the business's assets are not misappropriated. |
| 3. Implement secure measures for the handling of cash and checks. |
- Additional labor cost for the staff training for cash and check handling procedures. - Cost of a locking safe or lockbox for cash and check receipts. |
- Recording every check in a log upon receipt, and making sure to reconcile to deposit credits on the bank statement will ensure that cash balance is correct. - Only authorized person can have access to the safe, thus eliminate theft.
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Step-by-step explanation
Hi, kindly refer to the table above for the internal controls that can be implemented
