Top Posters
Since Sunday
25
j
23
21
j
21
D
21
z
20
i
19
v
19
a
18
a
18
s
18
a
18
New Topic  
wrote...
Posts: 588
Rep: 0 0
2 years ago
Internal controls develop as a business grows. What are the three basic internal controls that a company needs to implement at the start of business? Why do we need each of these controls?
Textbook 

Survey of Accounting: Making Sense of Business

Edition: 1st
Author:
Read 63 times
3 Replies
Replies
Answer verified by a subject expert
wrote...
Top Poster
Posts: 726
Rep: 1 0
2 years ago
Sign in or Sign up in seconds to unlock everything.
 The three basic internal controls are protecting physical assets, protecting proprietary information and creating the right environment. Protecting the physical assets is important because you do not want your equipment or merchandise leaving the premises without your knowledge. This also includes cash. If proprietary information gets out it could give your competitors an edge over you because they may know your financial position, your strategic plan or the formula to your latest invention. Creating the right environment is probably the most important because if you don't have this, the rest doesn't matter. Creating the right environment means top management setting the tone for the internal controls that are implemented and then adhering to the controls.         
This verified answer contains over 120 words.
1
Related Topics
wrote...
2 years ago
Aha, makes more sense now.
wrote...
2 years ago
Happy to help, please mark as solved
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  114 People Browsing
Related Images
 773
 99
 107