The four business or events$-$processing functions that constitute the segregation of duties control plan are:

A$.$

Authorizing events

B$.$

Executing events

C$.$

Recording events

D$.$

Safeguarding resources

Required:

Below is a list of thirteen events$-$processing activities. Classify each of the thirteen activities into one of the four functional categories listed above by selecting the letter A$,$ B$,$ C$,$ or D on the answer line for each question.$$

$$

BUSINESS OR EVENT PROCESSING ACTIVITIES

Answers

$$

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$1.$

The order entry department instructs the shipping department to ship goods to a customer by sending an approved document to the shipping department.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$2.$

The shipping department keeps inventory items in a locked storeroom.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$3.$

The billing department prepares and mails a bill to the customer.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$4.$

The invoice in item $3$ is added to the customer balance in the accounts receivable master data.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$5.$

The general ledger bookkeeper enters a sales event in a data file.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$6.$

The purchasing department order goods.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$7.$

The inventory control department signs a document requesting that goods be purchased.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$8.$

The purchasing department manager reviews and signs all purchase order documents in excess of $$100.$

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$9.$

The receiving department processes goods received from the vendor.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$10.$

The receiving department completes the receiving report.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$11.$

After being received goods are placed into the locked inventory storeroom.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$12.$

A payable is recognized by updating the accounts payable master data.

$[$ Select $]["$A$","$B$","$C$","$D$"]$

$13$

An outside auditing firm annually supervises a physical count of the items in a retail stores' shelf inventory.$$ This is an example of: