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Match Each of the Following Transactions with the Applicable Internal

Question 198

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

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

Correct Answer:

A company uses a check protector.
A company has separate departments for purchasing, receiving and accounts payable.
A company buys an insurance policy to protect against employee theft.
A company uses a computerized point of sale system.
A company uses a voucher system.
A company hires CPAs to perform an audit.
No two clerks share the same cash drawer.
A company has an internal auditor on staff.
Cashier does not have access to the cash register recorded tape or file.
The bookkeeper prepares and signs checks.
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