Common use of Physical Clause in Contracts

Physical. These controls are concerned mainly with the custody of assets and involve procedures and security measures designed to ensure that access to assets is limited to authorised personnel. Detection controls: (a) Arithmetic and accounting (i) These are basic controls within the recording function which check that transactions to be recorded and processed have been authorised, that they are complete, and that they are correctly recorded and accurately processed. (ii) Such controls include checking the arithmetical accuracy of records, the maintenance and checking of totals, reconciliations, control accounts, and accounting for documents.