Questions

The principles of internal control are the concepts management uses to establish the ways to protect company assets.

The main internal control principles include:

• Establish Responsibilities
• Maintain Records
• Insure Assets by Bonding Key Employees
• Segregate of Duties
• Mandatory Employee Rotation
• Split Related Party Responsibility
• Use Technological Controls
• Perform Regular Independent Reviews

Financial reports are used for monitoring and controlling the movement of cash into and out of a business. They are used to communicate relevant, reliable and understandable information about the business that can be used by managers, analysts, investors to make decisions.