Answer: Internal control Procedure
Explanation: Internal control, as defined by accounting and auditing, is a process for assuring of an organization's objectives in operational effectiveness and efficiency, reliable financial reporting, and compliance with laws, regulations and policies. A broad concept, internal control involves everything that controls risks to an organization. It is a means by which an organization's resources are directed, monitored, and measured. It plays an important role in detecting and preventing fraud and protecting the organisation.
1. Employees are required to take vacations.- Good Internal Control . 2. Any member of the sales department can approve credit sales. -Weak Internal Control. 3. Paul Jaggard ships goods to customers, bills customers, and receives payment from customers.- Good Internal Control 4. 4. Total cash receipts are compared to bank deposits daily by someone who has no other cash responsibilities. -Good internal Control. 5.Time clocks are used for recording time worked by employees.- Good internal Control . The organization runs on Preventative Internal Control
Answer:
As indicated by problem statement and whole paragraph as employees are required to take vacation the whole procedure is an example of internal control process and its principle is being violated.
