Describe the basic internal control procedures.

• Control procedures are actions that company personnel take to make sure that policies set forth by management are followed.
• Important accounting controls are concerned with safeguarding assets and producing accurate and timely financial statements. They include:
• Proper authorizations-only certain personnel may authorize transactions.
• Segregation of duties-physical custody of assets must not be combined with the ability to account for those assets.
• Independent verification-for example, an inventory count.
• Safeguarding of assets and records-both must be adequately protected.
• Independent review and appraisal-done primarily by internal audit.
• Design and use of business documents-source document control.