• Insure assets and bond key employees.
• Maintain adequate records.
• Perform regular and independent reviews.
• Separate recordkeeping from custody of assets.
• Establish responsibilities.
• Apply technological controls.
• Divide responsibility for related transactions.

Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. a. At Tico Company, Julia and Trevor alternate lunch hours. Julia is the petty cash custodian, but if someone needs petty cash when she is at lunch, Trevor fills in as custodian. b. Nori Nozumi posts all patient charges and payments at the Hopeville Medical Clinic. Each night Nori backs up the computerized accounting system but does not password lock her computer. c. Ben Shales prides himself on hiring quality workers who require little supervision. As office manager, Ben gives his employees full discretion over their tasks and for years has seen no reason to perform independent reviews of their work. d. Marker Theater has a computerized order-taking system for its tickets. The system is backed up once a year. e. Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company