B 3. The four events-processing functions that constitute the segregation of duties control plan are:

A. Authorizing events

B. Executing events

C. Recording events

D. Safeguarding resources

Required:

Below is a list of twelve events-processing activities, five relating to the cycle of activities involved in processing a sales event and seven relating to the cycle for a purchase event (the last two i.e. 11 and 12 are provided as examples). Draw up a table in your answer booklet similar to the example provided below. Classify each of the ten activities (numbered 1 to 10) into one of the four functional categories listed above by placing the letter A, B, C, or D against each number.

(See the examples for items 11 and 12 below). You should use only one letter for each of the answers.

EXAMPLE OF FORMAT TO BE USED IN YOUR ANSWER BOOKLET Event-Processing Activity Answer 11 12 D EVENT-PROCESSING ACTIVITIES (For a sales event) 1. The order entry department instructs the shipping department to ship goods to a customer by sending an approved document to the shipping department. 2. The shipping department keeps inventory items in a locked storeroom. 3. The billing department prepares and mails a bill to the customer. 4. The invoice in item 3 is added to the customer balance in the accounts receivable master data. 5. The general ledger bookkeeper enters a sales event in a data file. (For a purchase event) 6. The purchasing department order goods. 7. The inventory control department signs a document requesting that goods be purchased. 8. The purchasing department manager reviews and signs all purchase order documents in excess of $100. 9. The receiving department processes goods received from the vendor. 10. The receiving department completes the receiving report. 11. Used as examples for answer booklet format After being received goods are placed into the locked inventory storeroom. 12. A payable is recognized by updating the accounts payable master data