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Unformatted text preview: Associate Level Material Appendix B Cash Management Matrix Directions : Using the matrix, list how each of the principles of internal control works, and give an example for each. Next, list how each of the principles of cash management works, and give an example for each. Principles of Internal Control How it Works Example Establishment of responsibility Ensures the reliability of financial statements by assigning a duty to one person and making them responsible for any errors. A retailer could have only one manager who sign for incoming deliveries. Segregation of duties This can minimize error by dividing responsibilities to employees and allowing each to evaluate each others work. A retailer could allow warehouse workers to release products to the sales people so they can deliver it. Rather than sales people having to retrieve the items they sell from the warehouse. Documentation procedures This can ensure reliability by having appropriately numbered documentation for each transaction. documentation for each transaction....
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- Spring '12