Match Each of the Following Transactions with the Applicable Internal

question 52

Short Answer

Match each of the following transactions with the applicable internal control principle that is being violated listed.
A. Establish responsibility
B. Maintain adequate records
C. Insure assets and bond employees
D. Separate recordkeeping from custody of assets
E. Divide responsibility for related transactions
F. Apply technological controls
G. Perform regular and independent reviews
_____ 1. Cashiers have access to the cash register recorded tape or file.
_____ 2. A company uses a voucher system, but the cash disbursement clerk pays directly from invoices received.
3. Only sales clerks use the cash registered, but they all share the same cash drawer.
_____ 4. The bookkeeper prepares and signs checks and completes the bank reconciliation.
5. A restaurant allows servers to keep cash collected in their aprons and ring in all sales at the end of the night.
___ 6. A company fails to hire a CPA to perform an annual audit.
_____ 7. A company does not bond its key cash-handling employees.
_____ 8. A company has a single department that handles purchasing, receiving, and inventory management.
_____ 9. A large company has no internal auditor on staff.
_____ 10. A company manager keeps pre-signed checks in his desk drawer for employees to hand write when the accountant is out of the office.

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Definitions:

Capabilities Approach

A normative framework proposed by Martha Nussbaum and Amartya Sen that emphasizes what individuals are able to do and be, in contrast to resources they have.

Primary Focus

The main point of attention, interest, or activity on which efforts are concentrated in a particular context or endeavor.

Health

A state of complete physical, mental, and social well-being, not merely the absence of disease or infirmity.

Autonomy

The capacity to make an informed, uncoerced decision; frequently discussed in ethics and philosophy as a fundamental human right.