Internal control objectives over transactions consist of

a$)$ validity or existence

b$)$ completeness

c$)$ authorization

d$)$ accuracy

e$)$ classification, accounting and proper period.

Required:

For each of the following procedures $($# $31$ to #$40$ below$),$ mark in the attached excel

sheet which internal control objective is best satisfied by each procedure $($choose from

a$,$ b$,$ c$,$ d or e above corresponding to the above internal control objectives$).$ There is only

one correct answer to each question.

Revenue$/$Receivable$/$Receipts System Procedure Internal audit objective

satisfied

$31.$Internal audit staff send confirmations to customers on a

regular basis. a b c d e

$32.$The accounts receivable subsidiary ledger is reconciled to the

account receivable control account in the general ledger on a

$6$

$7$

regular basis. a b c d e

$33.$Quantities shipped to customers are compared with sales a b c d e

invoice quantities.

$34.$All sales invoices are pre$-$numbered. a b c d e

$35.$Access to blank sales invoices is restricted. a b c d e

Purchases$/$Payable$/$Payments System Procedures

$36.$The accounts payable sub$-$ledger is reconciled

monthly to the accounts payable control account in the general a b c d e

ledger.

$37.$A bank reconciliation is performed monthly by someone who

does not have cash custody or recordkeeping responsibility. a b c d e

$38.$Supplier invoices are matched to purchase orders and

receiving reports. a b c d e

Payroll System Processes

$39.$Payroll records are reconciled to tax reports made to the

government. a b c d e

$40.$Payroll journal is periodically compared to personnel files. a b c d e