CAPE Accounting Unit 1 · 2009 · Paper 2 · Question 1(c)(i)
You are discussing internal control with the owner of a new company.
What is the meaning of the term 'internal control'?
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Practise this questionOther parts of this question
- 1(a)List the FIVE characteristics and match EACH with the appropriate definition by selecting the correct letter from the table.[5 marks]
- 1(b)Define the term 'due process' as it relates to the development of accounting standards.[2 marks]
- 1(c)(ii)What is the role of internal control in a business organization?[3 marks]
- 1(c)(iii)Why are internal controls important for inventory (stock)?[3 marks]
- 1(c)(iv)Identify TWO internal controls that should be put in place for accounts receivable (debtors).[2 marks]
- 1(d)(i)Prepare journal entries with narratives to correct the four errors described.[16 marks]
- 1(d)(ii)Prepare a statement showing the necessary adjustments to the profit.[2 marks]
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