Classifying Internal Control Activities

Match each of the control activities listed below with the most closely related type of control activity.

Only the cashier assigned to the cash register is allowed to perform transactions.

Division managers are evaluated annually on the basis of their division's profitability.

Invoices received from outside suppliers are filed with purchase orders.

Employees with access to the accounting records are not permitted to open the mail because it contains many payments by check from customers.

The extent of access to the many segments of the company's computer system is tightly controlled by individual identification cards and passwords that change at

regular intervals.

Each shipment to customers from inventory is recorded on a specially printed form bearing a sequential number; these forms are the basis for entries into the

computer system, which makes entries to inventory records and produces periodic reports of sales and shipments.

At regular intervals, internal audit reviews a sample of expenditure transactions to determine that payment has been made to a bona fide supplier and that the

related goods or services were received and appropriately used.