3. what are the principles of internal controls?

Brief Explanations:

Internal controls in business aim to safeguard assets, ensure financial statement reliability, and promote operational efficiency. Key principles include establishment of responsibility (assigning specific tasks to individuals), segregation of duties (separating key functions like authorization, custody, and record - keeping), documentation procedures (maintaining proper records), physical controls (securing assets), independent internal verification (periodic reviews), and human resource controls (hiring, training, and bonding employees).

Answer:

The principles of internal controls include establishment of responsibility, segregation of duties, documentation procedures, physical controls, independent internal verification, and human resource controls.