GO TO A STORE (Retail or Grocery) AND SHOP FOR INTERNAL CONTROLS
Go a local store and observe the internal controls in action in a business-Describe the internal control , the objective of the control and how the control relates to the accounting records.
Indicate the business that you observed. The report should be 2-4 pages with at least 4 internal controls that can be observed.
Five controls have been specifically identified: segregation of duties, proper authorization of transactions, prenumbered documents, physical control/safeguarding of assets and records, and monitoring or periodic assessment of controls and procedures.
One practical application of internal control would be a sign posted in a store that indicates the customer would get the purchase free if they do not receive a receipt. The internal control procedures is that a receipt must be given when cash is received.
The objective is physical control over assets and records. What would happen if the transaction were not recorded? Try to relate together as many accounting concepts to each example of internal control.
