What is internal control? According to the University of Phoenix, Axia College Internal Control and Cash (2009), internal control refers to the set of methods and related measures adopted within an organization to protect its assets and improve the accuracy and reliability of its accounting records. The main reasons for internal control are to help businesses protect their investments and goods from theft by anyone, including employees, and to ensure that accounting is done correctly and truthfully. There are six principles of internal control that apply to most businesses. Establishing Responsibility- gives a single employee responsibility for a certain task. A person is less likely to steal if they are the only person who can be linked to a task. Segregation of duties: different people are responsible for related activities and the maintenance of asset records is separated from the physical custody of assets. Physical, mechanical and electronic control – Physical controls relate to the protection of assets, for example safes and locks. Mechanics and...