Question

Below are select examples of some of the control activities that a large department store of men and women's clothing has in place. Required: For each scenario being described, indicate the most likely control activity being described. Special Note: Each possible answer is only used once in this question. employee management When an employee is first hired, he or she is given clear instructions regarding the company's internal control procedures as well as how to report any irregular activities the employee discovers. Choose... The company's inventory buyer places orders but a different person pays for the orders. reconciliations . The company physically counts its inventory at the end of each year and compares the physical count to its accounting records. Choose... A customers credit card information is encrypted so that only authorized personnel can access it. Choose... Warehouse employees are required to have their personal items (ex. handbags and bookbags) scanned by a machine before they can leave the warehouse.

Answer 1

1. Employee management
Since in this employees are given instructions regarding companies internal control policies

2. Segregation of Duties
Since different duties is segregated between persons

3. Reconciliations
Since inventory recorded is compared to physical count of inventory

4. e-commerce control

5. Physical controls
It is to check that property of the company is not taken outside.