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Internal Control$$Integrated Framework is the standard by which companies design, analyze, and evaluate internal control. The objectives of internal control are covered in the chapter and a discussion of how these objectives are achieved through the Integrated Framework$$s five elements of internal control.

A major reason that companies use bank accounts is for internal control. Some of the control advantages of using bank accounts are as follows:

Bank accounts reduce the amount of cash on hand.

Bank accounts provide an independent recording of cash transactions. Reconciling the balance of the cash account in the company$$s records with the cash balance according to the bank is an important control.

Use of bank accounts facilitates the transfer of funds using EFT systems.

Original Post:

Answer the following questions and support your responses with detail.

~Name and describe the five elements of internal control. Is any one element of internal control more important than another?

~Why should the responsibility for maintaining the accounting records be separated from the responsibility for operations? Explain.

~The balance of Cash is likely to differ from the bank statement balance. What two factors are likely to be responsible for the difference?

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