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Match Each Appropriate Internal Control Principle(s) with the Following Items

Question 9

Matching

Match each appropriate internal control principle(s) with the following items.

Premises:

Responses:

Z-Mart buys an insurance policy to protect against employee theft.

Establish responsibility.

Z-Mart has an internal auditor on staff.

Divide responsibility for related transactions.

Z-Mart uses a voucher system.

Insure assets and bond employees.

The cashier does not have access to the cash register record tape and file.:

Perform regular and independent reviews.

Z-Mart uses a computerized point of sale system.

Separate recordkeeping from custody of assets.

Two clerks share the same cash drawer.

Apply technological controls.

Z-Mart hires Nelson and McGuire, CAs, to perform an audit.

Maintain adequate records.

Z-Mart has separate departments for purchasing, receiving, and accounts payable.

The bookkeeper prepares and signs cheques.

Z-Mart uses a cheque protector.

Premises:

Z-Mart buys an insurance policy to protect against employee theft.

Z-Mart has an internal auditor on staff.

Z-Mart uses a voucher system.

The cashier does not have access to the cash register record tape and file.:

Z-Mart uses a computerized point of sale system.

Two clerks share the same cash drawer.

Z-Mart hires Nelson and McGuire, CAs, to perform an audit.

Z-Mart has separate departments for purchasing, receiving, and accounts payable.

The bookkeeper prepares and signs cheques.

Z-Mart uses a cheque protector.

Responses:

Establish responsibility.

Divide responsibility for related transactions.

Insure assets and bond employees.

Perform regular and independent reviews.

Separate recordkeeping from custody of assets.

Apply technological controls.

Maintain adequate records.

Correct Answer:

Premises:

Responses:

Z-Mart buys an insurance policy to protect against employee theft.

Z-Mart has an internal auditor on staff.

Z-Mart uses a voucher system.

The cashier does not have access to the cash register record tape and file.:

Z-Mart uses a computerized point of sale system.

Two clerks share the same cash drawer.

Z-Mart hires Nelson and McGuire, CAs, to perform an audit.

Z-Mart has separate departments for purchasing, receiving, and accounts payable.

The bookkeeper prepares and signs cheques.

Z-Mart uses a cheque protector.