Summarize the internal control principle of establishing responsibility by completing the following sentence. Proper internal control means that responsibility for a (task/shortage/sale) is clearly (posted/established/compensated) and assigned to one person.

Proper internal control means that responsibility for a task is clearly established and assigned to one person.

Explanation:

The MAIN purpose of internal controls IS to protect assets and ensure reliable accounting

The main Principles of internal control are

Divide responsibility for related transactions Perform regular and independent reviews Maintain adequate records Establish responsibilities

The Companies follow the internal control procedure of maintaining adequate records by

Keeping detailed records makes it unlikely that assets are lost or stolen without detection Reliable records are a source of information that managers use to monitor activities

Thus we can say that Proper internal control means that responsibility for a task is clearly established and assigned to one person.