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Match Each of the Following Transactions with the Applicable Internal

Question 203

Matching

Match each of the following transactions with the applicable internal control principle.

Premises:
Apply technological controls
Establish responsibility
Perform regular and independent reviews
Apply technological controls
Separate recordkeeping from custody of assets
Divide responsibility for related transactions
Perform regular and independent reviews
Divide responsibility for related transactions
Insure assets and bond employees
Establish responsibility
Responses:
The bookkeeper prepares and signs checks
A company has an internal auditor on staff
A company uses a computerized point of sale system
A company hires CPAs to perform an audit
A company has separate departments for purchasing, receiving and accounts payable
A company uses a voucher system
No two clerks share the same cash drawer
A company buys an insurance policy to protect against employee theft
A company uses a check protector
Cashier does not have access to the cash register recorded tape or file

Correct Answer:

Apply technological controls
Establish responsibility
Perform regular and independent reviews
Apply technological controls
Separate recordkeeping from custody of assets
Divide responsibility for related transactions
Perform regular and independent reviews
Divide responsibility for related transactions
Insure assets and bond employees
Establish responsibility
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