Question

What control procedures could Petty Corporation have employed to prevent this unauthorized use of cash? Classify each control procedure in accordance with the SAS 78 framework (authorization, segregation of functions, supervision, and so on).

Answer 1

Following are the Control Procedure of SAS 78

Control Procedures:

• All checks ought to require the treasurer's mark.
• A holding organization can be utilized to confirm representative honesty through record verification.
• The inside inspectors ought to play out an occasional survey of business ledgers, which are as often as possible used to counterbalance deceitful exchanges.