Identify each of the following as relating to the control environment, control procedures, or monitoring: 1. Hiring of external auditors to review the adequacy of controls 2. Personnel policies 3. Safeguarding inventory in a locked warehouse

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Business

Keith Gaines

26 January, 23:12

Identify each of the following as relating to the control environment, control procedures, or monitoring: 1. Hiring of external auditors to review the adequacy of controls 2. Personnel policies 3. Safeguarding inventory in a locked warehouse

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Diya Carlson · Answer 1

Answer with Explanation:

Internal control refers to the plans and policies of the business altogether with other measures along with safeguard its assets, encourage their employees to stick to the plans stated to them, increase the efficiency of operations and to ensure reliable and correct accounting information.

1. Hiring of external auditors to review the adequacy of controls

It should hire external auditor to check the importance of controls and the level to control it.

2. Personnel policies: it need personnel policies to make employees more active and make them to work more efficiently.

3. Safeguarding inventory in a locked warehouse:

It safeguard the inventory in a verified and locked warehouse, so that it don't get spoiled.