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Mag's Pie Shop is a rapidly growing baker anddistributor of specialty pies for festive occasions. Mag'sCPA adviser keeps recommending that Mag install better internalcontrols over business. Specifically, the CPA recommends that Magseparate the company's recordkeeping function from thephysical control of cash and other assets. The CPA also recommendsthat Mag use only preprinted and renumbered forms for all businesstransactions.
a.What is the purpose of internal controls? Be specific.
b.For each internal control suggested by the CPA, give one example of anun satisfactory situation or event that the control would prevent.
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