M8-3 Identifying Internal Control Principles Applied by a Merchandiser Identify the internal control principle represented by each point in the following diagram.

Identify the internal control principle represented by each point in the following diagram.

1. One office employee places all merchan- dise orders. 2. Only warehouse employees receive goods. 4. Merchandise orders are recorded on a purchase order form. 5. Receiving reports are completed to indicate goods received. 6. Goods billed by suppliers are compared to purchase orders and receiving reports before being paid. 3. The warehouse is locked and activities are electronically monitored.