Question

3. The four events-processing functions that constitute the segregation of duties control plan are A. Authorizing events B. Executing events C. Recording events D. Safeguarding resources Required Below is a list of ten events-processing activities, five relating to the cycle of activities involved in processing a sales event and seven relating to the cycle for a purchase event. Classify each of the twelve activities into one of the four functional categories listed above by placing the letter A, B, C, or D on the answer line to the left of each number. You should use only one letter for each of the answers. EVENT-PROCESSING ACTIVITIES (For a sales event) 1. The order entry department instructs the shipping department to ship goods to a 2. 3. 4. customer by sending an approved document to the shipping department. The shipping department keeps inventory items in a locked storeroom. The billing department prepares and mails a bill to the customer. The invoice in item 3 is added to the customer balance in the accounts receivable master data. 5. The general ledger bookkeeper enters a sales event in a data file. (For a purchase event) 6. The purchasing department is requested to order goods. 7. The purchasing department receives a signed request document from the in control department. 8. The purchasing department manager reviews and signs all order documents in excess of $100. The goods are received from the vendor. The receiving department completes the receiving report. 9. 10.

Answer 1

(For a sales event)
1	A.
2	D.
3	B.
4	C.
5	C.
(For a purchase event)
6	B.
7	A.
8	A.
9	B.
10	C.