Question

Match each of the following business practices with the best internal control principle it is an example of. The employee responsible for ordering Inventory is a different employee than the one who makes the payment A company uses time clocks versus hand written time records. Cashier has access to cash in drawer, but does not have access to the cash register tape (accounting record). A company buys an Insurance policy to protect against employee theft. A company pays for external auditors to audit their financial statements.

Match each of the options in the boxes to the items in the second picture.

Answer 1

Match the items as follows: A в 1 1 The employee responsible for ordering inventory is different from the one making payment 2 2 A company uses time clock versus hand written time records 3 3 Cashier has access to cash drawer but not to cash register 4 A Company buys insurance to protect against emplyee theft 5 5A company pays external auditors to audit their financial statements Divide responsibility for related transactions Apply technological controls Divide responsibility for related transactions Insure assets and bind employees Perform regukar and independent reviews