Explain how each of the following actions strengthens a company’s system of internal control: a. Separate...

Explain how each of the following actions strengthens a company’s system of internal control:

a. Separate work functions

b. Hire competent personnel

c. Develop plans and budgets

d. Use control numbers on all business documents

Solutions

Expert Solution

a.separate work function=separate work function creates diversification,as the work is diversified separately to all departments the organisation will run smoothly and work load will also v diversified as a result a smooth business environment will be created

b.Hire competent personnel=As the work is given to more competent personnel they wil perform their job smoothly and with professionalism.At the time of choosing the personnel for a particular work the person who hires should see that the person is capable of completiong the work or not its like putting the square box in square hole

c.Develop plans and budgets=Plans gives a proper direction to the company as in which direction it will go without a proper plan a company will get disorganised and budgets are one of the most important part of the company as it estimates the product or service which they are going to provide.It also gives direction to workers

d.Use control numbers on all business documents=Documents are the paper work of the company.Proper documentation helps in decision making and presentation.The documents should be maintained with control which are important to the company

ekkarill92 answered 1 year ago

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