MKT 2210 Lecture Notes - Internal Control, Internal Audit, Mnemonic

• School: University of Manitoba
• Department: Marketing
• Course: MKT 2210
• Professor: Subbu Sivaramakrishnan

Document Summary

These are eight types of internal control listed. one way of remembering them is use the mnemonic spam soap. Segregation of duties. executive tasks should be separated from control tasks. An example of segregation of duties concerns the receipt, recording and banking of cash. It is not a good idea for the person who opens the post to be the person responsible for recording that the cash has arrived. It would be even poorer practice for that person to be responsible for taking that cash to the bank. If these duties are not segregated, there is always the chance that the person will misappropriate or steal the cash and no-one would know. Physical controls. these are concerned with the custody of assets and records and are also concerned with ensuring that access to assets and records is only permitted to authorised personnel. Procedures and security measures are needed to ensure that access to assets is limited to authorised personnel.