Limitations of effective system of internal control


Response to the following questions:

1. What are some of the limitations on a company's effective system of internal control?

2. What two basic procedures are essential to an effective system of internal control over cash?

3. How would you evaluate the following statement?

The only reason a company positions its cash register so that customers can see the display is so customers feel comfortable knowing they are being charged the correct amount for the purchase.

 

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