Below, you will find an internal control associated with a financial statement audit cycle that the auditors identified for one of their clients. Indicate the control activity being considered in this case.

"Check collections are received by mail. The receptionist receives this correspondence and endorses the checks before transferring them to the credit department."

Question $21$ Answer

a$.$

Adequate documents and records

b$.$

Independent check on performance

c$.$

Adequate separation of duties

d$.$

Proper authorization of transactions and activities