The following is a list of internal controls: 1. Videotaped camera surveillance of the store's premises. 2.

Question:

The following is a list of internal controls:

1. Videotaped camera surveillance of the store's premises.

2. The clerk examines a check for completeness.

3. The clerk's supervisor approves checks for more than \(\$ 50\) after examining all of the checks and a list of people known to pass bad checks.

4. Telephone credit-card number for approval of charges exceeding \(\$ 50\).

5. The end-of-day total of sales compared with the totals of cash from the register, checks, and credit-card sales slips.

Required:

a. Examine the flowchart on the following page and place numbered symbols for the above controls at appropriate control points on the flowchart.

b. Determine whether each of the controls above might best be described as preventive, detective, corrective, directive, or compensative.

c. Name at least three additional controls that might be employed in the above process - one preventive, one detective, and one corrective.

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Internal Auditing: Principles And Techniques

ISBN: 9780894131677

1st Edition

Authors: Richard L. Ratliff, W. Wallace, Walter B. Mcfarland, J. Loeboecke

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