Internal control procedures
Dick Haney is opening a new business that will sell sporting goods. It will initially be a small operation, and he is concerned about the security of his assets. He will not be able to be at the business all of the time and will have to rely on his employees and internal control procedures to ensure that transactions are properly accounted for and assets are safeguarded. He will have a store manager and two other employees who will be sales personnel and stock personnel and who will also perform any other duties necessary. Dick will be in the business on a regular basis. He has come to you for advice.
Write a memo to Dick outlining the procedures that he should implement to ensure that his store assets are protected and that the financial transactions are properly recorded.