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Match Each of the Following Transactions with the Applicable Internal

Question 37

Matching

Match each of the following transactions with the applicable internal control principle.

Premises:

Responses:

Separate recordkeeping from custody of assets.

A company has an internal auditor on staff.

Apply technological controls.

A company has separate departments for purchasing, receiving and accounts payable.

Establish responsibility.

No two clerks share the same cash drawer.

Apply technological controls.

A company uses a voucher system.

Insure assets and bond employees.

A company uses a check protector.

Divide responsibility for related transactions.

Cashier does not have access to the cash register recorded tape or file.

Perform regular and independent reviews.

A company uses a computerized point of sale system.

Divide responsibility for related transactions.

A company hires CPAs to perform an audit.

Establish responsibility.

The bookkeeper prepares and signs checks.

Perform regular and independent reviews.

A company buys an insurance policy to protect against employee theft.

Premises:

Separate recordkeeping from custody of assets.

Apply technological controls.

Establish responsibility.

Apply technological controls.

Insure assets and bond employees.

Divide responsibility for related transactions.

Perform regular and independent reviews.

Divide responsibility for related transactions.

Establish responsibility.

Perform regular and independent reviews.

Responses:

A company has an internal auditor on staff.

A company has separate departments for purchasing, receiving and accounts payable.

No two clerks share the same cash drawer.

A company uses a voucher system.

A company uses a check protector.

Cashier does not have access to the cash register recorded tape or file.

A company uses a computerized point of sale system.

A company hires CPAs to perform an audit.

The bookkeeper prepares and signs checks.

A company buys an insurance policy to protect against employee theft.

Correct Answer:

Premises:

Responses:

Separate recordkeeping from custody of assets.

Apply technological controls.

Establish responsibility.

Apply technological controls.

Insure assets and bond employees.

Divide responsibility for related transactions.

Perform regular and independent reviews.

Divide responsibility for related transactions.

Establish responsibility.

Perform regular and independent reviews.