Following are two lists: (1) sample audit procedures and (2) several methods of internal controls.

Audit Procedures 1. Test the documentation for a sample of 25 expenditures and verify the recorded amounts.

2. Examine the divisional organization charts for improper lines of authority.

3, Examine personnel background forms on key personnel, match their backgrounds with their respective job descriptions, and evaluate the suitability of these key employees to their positions.

4. Test the budgeting director’s compliance with budget review procedures.

5. Test a sample of new sets coming off the production line for quality control.

6. Foot and crossfoot the division’s payroll register.

7. Flowchart the purchasing, receiving, and payment functions for regional operations.

Methods of Internal Control 1. Organizational structure and responsibilities.
2. Segregation of related duties.
3. Proper authorization.
4. Budgeting and accounting.
5. Standards of performance.
6. Policies and procedures.
7. Selection, training, and supervision of personnel.
8. Review.
Required:
Identify which type of control is being tested by each of the audit procedures.