Question

That is my new business:

-I will start my own business and the name of my business will be "Dina Groceries Store".
- I will sell all the stuff of Grocery items and products, I will sell anything related to groceries.
- It will be bricks and mortar store because their sales are better.
-There are two types of policies I would put in place for my business, I see those are most important to the costumers:- Refund-Discounts offer. If I don't have those policies in my business, it probably won't succeed

The question is:

Chapter 5 has introduced us to Internal Controls that businesses use to prevent errors and fraud

Name two internal controls I would institute for my new business and why I would use them?

Answer 1

VnWV & Name dico inlanal contials used to Prevent crrors and fraud in new business. Sol. The nature of business is Groceries Sloke which can be considered as small business. In general, Internal Controls are defined broadly as the measures a business takes to proléct business. Internal control system goals are a 1) To reduce the risk to an acceptable level. . 2) To have methods in place to delect inaccuracy or fraud that has occurrea Types of inteānal controls The internal controls are broadly Categorized as preventive and delictive. Lab Preventive - These controls serve to stop error or fraud from occurring Scanned with

Selective Controls are antincet do geveal inconsistency, essor at Suspicious circunstances. Anoller lippe of control as Corrective Contiols which refers to controls implemented to mitigate lesses or to make changes 15 existing policy The process to use internal Ceritiet System De The basic principle is that all transacturing flould be breakin de 1077 into Slips and each step in the transaction should be completed by a different person. Example Aucherizing transachiens by Quie person. Custody of cash by are processing sales by one. Issuing checks by one etc So maintaining internal Control is CS an crgoing commitment requiring

3K regulas evaluation dind assessment q risks in all areas. In addition to the internal Control Systein within the business, The American Institute of Certified public Accountants giving awareness and educating employees in fraud awareness . Conclusion: So, Dina Groceres. sloro Should focus on business will limited resources is to maintain strong internal controls and build a frand awareness program with en plezzee poarticipation. Scanned with CamScanner