Match each of the examples of specific control activities in the production cycle listed 1 through 6 below with the appropriate general control objectives (A through F) and place the identifying letter in the space provided.

A. Validity B. Completeness C. Authorization D. Accuracy E. Classification F. Proper period cut-off

____1. Entries derived from job cost sheets are subject to independent verification. ____2. Labour usage reports are compared to job time tickets. ____3. The production foreman is required to record all material and labour used as being either direct labour or indirect labour. ____4. Production reports summarizing material and labour used are prepared weekly and transmitted to the accounting department for recording in the correct accounting month. ____5. All documents are pre-numbered, and the numerical sequence is accounted for. ____6. Materials use and labour use reports are prepared by the foreperson and approved by the production supervisor.

Answer rating: 100% (QA)

Step 11 Matching examples of specific control activities in the production cycle with the appropriat... View the full answer