Listed below are specific control policies and procedures prescribed by Hamilton Company. Identify the components of internal control to which each policy or procedure relates. For each item, identify one other policy or procedure for that internal control component that is not on the preceding list.
- Management is alert to complaints received from customers about billing errors.
- Management gives special consideration to the risks that can arise from the use of information technology in the accounting system.
- Employee's responsibilities are assigned so as to avoid any individual's being in a position to both commit an error or irregularity and then conceal it.
1. Monitoring of operations: Employees will be randomly monitored when handling financial transactions.
2. Information ...
This solution discusses control policies of Hamilton Company. We identify the components of internal control to which each policy or procedure relates, and we identify one other policy or procedure for that internal control component that is not in the preceding list.