Do It! Review 7-1 Identify which control activity is violated in each of the fol

Question

Do It! Review 7-1

Identify which control activity is violated in each of the following situations.

1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.

Physical controlsHuman resource controlsDocumentation proceduresEstablishment of responsibilityIndependent internal verificationSegregation of duties

2. Steve Nicoles orders merchandise for Binn Company; he also receives merchandise and authorizes payment for merchandise.

Independent internal verificationEstablishment of responsibilityDocumentation proceduresSegregation of dutiesHuman resource controlsPhysical controls

3. Several clerks at Draper’s Groceries use the same cash register drawer.

Physical controlsIndependent internal verificationEstablishment of responsibilityHuman resource controlsSegregation of dutiesDocumentation procedures

Explanation / Answer

Control activity which is violated in each of the following situations is as shown below:

1 Once a month, the sales department sends sales invoices to the accounting department to be recorded. Documentation procedures 2 Steve Nicoles orders merchandise for Binn Company; he also receives merchandise and authorizes payment for merchandise. Segregation of duties 3 Several clerks at Draper’s Groceries use the same cash register drawer. Physical control

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