Internal control systems are designed, amongst other things, to prevent error and
misappropriation.
Required:
Describe the errors and misappropriations that may occur if the following are not
properly controlled:
(i) Receipts paid into bank accounts; (2 marks)
(ii) Payments made out of bank accounts; (3 marks)
(iii) Interest and charges debited and credited to bank accounts. (2 marks)