5. Indicate whether each procedure is a preventive or detective control. a. authorizing a credit…
5. Indicate
whether each procedure is a preventive or detective control.
a.
authorizing a credit
sale
Preventive
Detective
b.
preparing a bank
reconciliation
Preventive
Detective
c.
locking the warehouse
Preventive
Detective
d.
preparing a trial
balance
Preventive
Detective
e.
counting inventory
Preventive
Detective
Use the internal control
procedures listed below to complete statements 6 through 12.
segregation of duties
specific authorization
general authorization
accounting records
access controls
independent verification
supervision
6. A
clerk reorders 250 items when the inventory falls below 25 items. This is an
example of __________________________.
7. The
internal audit department recalculates payroll for several employees each pay
period. This is an example of __________________________.
8. Locking
petty cash in a safe is an example of __________________________.
9. Approving
a price reduction because goods are damaged is an example of
__________________________.
10. Using
cameras to monitor the activities of cashiers is an example of
__________________________.
11. Not
permitting the computer programmer to enter the computer room is an example of
_______________________________.
12. Sequentially
numbering all sales invoices is an example of __________________________.
