1. List 3 control activities and the corresponding risks (i.e., why do we need these control activities) shown in the narrative above. Do NOT simply put a phrase, e.g., input control. Be specific to the context and explain each activity and risk.

2.For each control activities you mentioned in 1., is it a preventive control, a detective control or a corrective control? Why?

To rent the lawn mower or the snow blower, a customer needs to call the store to make a reservation. The sales person will check product availability while talking to the customer. If the product is not available during the requested time period, the customer can either cancel the order or change the time to another time period so the sales person can check again. If it is available, the sale person will need to keep the customer's name and phone number in the system. Then the sale person will put a tag on one of the machines, send the reservation information to the technicians and the accountant/cashier. After receiving the information, one of the technicians will check the machine to ensure it works normally. When the customer shows up to pick up the machine, the customer needs to pay at the cashier's (the accountant's) desk. The customer can pay either by cash or by credit card. When the customer returns the machine, one of the technicians will check the machine to make sure it's still in good shape and notify the cashier/accountant so the cashier/accountant can close this rental transaction.