Question

Summarize the internal control principle of establishing responsibility by completing the following sentence. Proper internal control means that responsibility for a (task/shortage/sale) is clearly (posted/established/compensated) and assigned to one person.

Answer 1

Proper internal control means that responsibility for a task   is clearly established and assigned to one person.

Explanation:

The MAIN purpose of internal controls IS  to protect assets and ensure reliable accounting

The main Principles of internal control are

• Divide responsibility for related transactions
• Perform regular and independent reviews
• Maintain adequate records
• Establish responsibilities

The Companies follow the internal control procedure of maintaining adequate records by

• Keeping detailed records makes it unlikely that assets are lost or stolen without detection
• Reliable records are a source of information that managers use to monitor activities

Thus we can say that  Proper internal control means that responsibility for a task   is clearly established and assigned to one person.