PSB $6-1$ CONSIDER INTERNAL CONTROL PROCEDURES

Consider what you have learned about internal control procedures and recognize they can also be used to safeguard non$-$cash assets. Match each procedure with a non$-$cash asset that could be safeguarded using it$.$

Maintaining physical safeguards

Segregation of duties

Transaction authorization

Record retention

Maintain and examine documentation for long$-$term assets like equipment and automobiles to ensure associated transactions $($e$.$g$.,$ for depreciation$)$ are properly calculated and recorded.

Inventory should be monitored and recorded by different employees, ensuring those authorized to have access to inventory are unable to steal it$.$

Similar to cash, inventory is a frequent target for thieves. These types of safeguards can ensure that unauthorized individuals do not have access to inventory.

Long$-$term assets like equipment and automobiles should not be discarded or sold below market price without approval to prevent outside parties from obtaining them at a particularly low price or for free.

Segregation of duties

Transaction authorization

Record retention

Maintain and examine documentation for long$-$term assets like equipment and automobiles to ensure associated transactions $($e$.$g$.,$ for depreciation$)$ are properly calculated and recorded.

Inventory should be monitored and recorded by different employees, ensuring those authorized to have access to inventory are unable to steal it$.$

Similar to cash, inventory is a frequent target for thieves. These types of safeguards can ensure that unauthorized individuals do not have access to inventory.

Long$-$term assets like equipment and automobiles should not be discarded or sold below market price without approval to prevent outside parties from obtaining them at a particularly low price or for free.