For each of the following controls, identify whether the control leaves a paper audit trail. Also identify a test of control audit procedure the auditor can use to test the effectiveness of the control.
a. An accounting clerk accounts for all shipping documents on a monthly basis and initials the monthly shipping log.
b. Bank reconciliations are prepared by the financial controller, who doesn't have access to cash receipts.
c. As employees check in daily by using time clocks, a supervisor observes to make certain no individual staff member 'punches in' more than one time card.
d. Vendors' invoices are approved by the financial controller after she examines the purchase order and receiving report attached to each invoice.
e. The cashier, who has no access to accounting records, prepares the duplicate bank deposit slip and delivers the deposit directly to the bank daily.
f. An accounting clerk verifies the price, extensions and additions of all sales invoices in excess of $300 and initials the duplicate sales invoice when he has completed the procedure.
g. The computer system produces an exception report for all credit sales processed where the credit limit on the accounts receivable master file has been exceeded. The report is reviewed and initialled daily by the credit manager.