Consider the internal controls listed below. For each one, explain: $($i$)$ the risk it addresses, $($ii$)$ the risk category from Brown$$s taxonomy, $($iii$)$ the broad purpose of internal control it achieves, and $($iv$)$ the nature of the control $($preventive$,$ detective, corrective$).$

$1.$ Reconciling a bank statement.

$2.$ Requiring that all purchase requisitions are coordinated through a central purchasing department.

$3.$ Encouraging employees to attend annual seminars on ethical behavior in the workplace and related topics.

$4.$ Tearing ticket stubs in half at a movie theater when a patron enters.

$5.$ Collecting cash at one window and delivering the order in a different window at a fast food establishment.

Answer rating: 100% (QA)

1 Reconciling a bank statement Risk Addressed Risk of misstatement or fraud in cash balances due to errors or unauthorized transactions Risk Category ... View the full answer