Proper Procedures for Authorization. Originates with the stockholders who elect a board of directors. Delegated to upper-level management and then throughout the firm. Only certain individuals should be authorized to enter data into accounting records and prepare accounting reports. Adequate Documents and Records .
Documents allow management to review transactions for appropriate authorization.
Evidence that the recording and summarizing functions that lead to financial reports are being performed properly. A well-designed document is easily interpreted and understood. Physical Control Over Assets and Records. Physical precautions used to protect assets and records, such as locks on doors, fireproof vaults, password verification, and security guards. The high cost of backup records is justified in protecting them.