Required:Match each of the control procedures listed below with the most closely related control procedurestype. Your answer should pair each of the numbers 1 through 10 with the appropriate letter.Control Procedure Typesa. Adequate documents and recordsb. Checks on recorded amountsc. Clearly defined authority and responsibilityd. Safeguards over assets and recordse. Segregation of dutiesControl Procedures1. Only the cashier assigned to the cash register is allowed to perform transactions.2. Division managers are evaluated annually on the basis of their division’s profitability.3. Invoices received from outside suppliers are filed with purchase orders.4. Employees with access to the accounting records are not permitted to open the mailbecause it contains many payments by check from customers.5. The extent of access to the many segments of the company’s computer system is tightly controlledby individual identification cards and passwords that change at regular intervals.6. Each shipment to customers from inventory is recorded on a specially printed form bearinga sequential number; these forms are the basis for entries into the computer system, whichmakes entries to inventory records and produces periodic reports of sales and shipments.7. At regular intervals, internal audit reviews a sample of expenditure transactions to determinethat payment has been made to a bona fide supplier and that the related goods orservices were received and appropriately used.8. A construction company stores large steel girders in an open yard surrounded by a 5-footfence and stores welding supplies in a controlled-access, tightly secured concrete building.9. Cash registers display the price of each item purchased to the customer as it is recordedand produce a customer receipt that describes each item and gives its price.10. The person in the controller’s office who prepares and mails checks to suppliers cannotmake entries in the general ledger system.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 19CYBK

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Required:
Match each of the control procedures listed below with the most closely related control procedures
type. Your answer should pair each of the numbers 1 through 10 with the appropriate letter.
Control Procedure Types
a. Adequate documents and records
b. Checks on recorded amounts
c. Clearly defined authority and responsibility
d. Safeguards over assets and records
e. Segregation of duties
Control Procedures
1. Only the cashier assigned to the cash register is allowed to perform transactions.
2. Division managers are evaluated annually on the basis of their division’s profitability.
3. Invoices received from outside suppliers are filed with purchase orders.
4. Employees with access to the accounting records are not permitted to open the mail
because it contains many payments by check from customers.
5. The extent of access to the many segments of the company’s computer system is tightly controlled
by individual identification cards and passwords that change at regular intervals.
6. Each shipment to customers from inventory is recorded on a specially printed form bearing
a sequential number; these forms are the basis for entries into the computer system, which
makes entries to inventory records and produces periodic reports of sales and shipments.
7. At regular intervals, internal audit reviews a sample of expenditure transactions to determine
that payment has been made to a bona fide supplier and that the related goods or
services were received and appropriately used.
8. A construction company stores large steel girders in an open yard surrounded by a 5-foot
fence and stores welding supplies in a controlled-access, tightly secured concrete building.
9. Cash registers display the price of each item purchased to the customer as it is recorded
and produce a customer receipt that describes each item and gives its price.
10. The person in the controller’s office who prepares and mails checks to suppliers cannot
make entries in the general ledger system.

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