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Classifying Internal Control Activities

Match each of the control activities listed below with the most closely related type of control activity.

$1.$ Only the cashier assigned to the cash register is allowed to perform transactions.

$2.$ Division managers are evaluated annually on the basis of their division's profitability.

$3.$ Invoices received from outside suppliers are filed with purchase orders.

$4.$ Employees with access to the accounting records are not permitted to open the mail because it contains many payments by check from customers.

$5.$ The extent of access to the many segments of the company's computer system is tightly controlled by individual identification cards and passwords that change at regular intervals.

$6.$ Each shipment to customers from inventory is recorded on a specially printed form bearing a sequential number; these forms are the basis for entries into the computer system, which makes entries to inventory records and produces periodic reports of sales and shipments.

$7.$ At regular intervals, internal audit reviews a sample of expenditure transactions to determine that payment has been made to a bona fide supplier and that the related goods or services were received and appropriately used.

$8.$ A construction company stores large steel girders in an open yard surrounded by a $5-$foot fence and stores welding supplies in a controlled$-$access, tightly secured concrete building.

$9.$ Cash registers display the price of each item purchased to the customer as it is recorded and produce a customer receipt that describes each item and gives its price.

$10.$ The person in the controller's office who prepares and mails checks to suppliers cannot make entries in the general ledger system.

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