6 Principles of Internal Control

Human Resource Controls

Bond employees who handle cash, rotate employees duties and require they take vacations, conduct thorough background checks

Documentation Procedures

Documenting transactions to provide evidence that those transactions have occurred.

Segregation of Duties

Having different individuals be responsible for related activities; having responsibility for record keeping for an asset separate from physical custody of that asset

Independent Internal Verification

The review of data prepared by employees

Physical Controls

Used to safeguard assets and enhance accuracy and reliability of accounting records

Establishment of Responsibility

assigning responsibility to specific employees, so that one person is responsible for a given task