Listed Below Are Seven Errors or Problems That Might Occur

Multiple Choice

Listed below are seven errors or problems that might occur in the processing of cash transactions. Also shown is a list of internal control principles. Evaluate each possible error and cite a principle that is listed that would reduce the probability of the error occurring. If none of the principles given will correct the problem, write 'None'. If you think more than one principle is appropriate, list all principles that apply.
Possible errors or problems:
-A small fire destroys 3 days of cash receipts.

A) Establishment of responsibility
B) Segregation of duties
C) Physical, mechanical and electronic control devices
D) Documentation procedures
E) Independent internal verification
F) Other controls