Chapter 6, Problem 4SE

Internal controls (Learning Objective 2) 5-10 min.

Indicate by letters which of the following control activities match with the following descriptions:

Separation of duties (SD)

Restricted access (RA)

Proper authorization (PA)

Adequate documents and records (ADR)

________ 1. Pre-numbered invoices

________ 2. Locking inventory in a warehouse

________ 3. Manager approval of sales returns

________ 4. Password protection of accounting software

________ 5. Not allowing the accounts payable clerk to sign checks