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