What is the purpose of internal controls

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Mag's Pie Shop is a rapidly growing baker anddistributor of specialty pies for festive occasions. Mag's CPA adviser keeps recommending that Mag install better internal controls over business. Specifically, the CPA recommends that Mag separate the company's record keeping function from the physical control of cash and other assets. The CPA also recommends that 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 a nun satisfactory situation or event that the control would prevent.

Reference no: EM13257600

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