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 __________________________.

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