1. One office employee places all merchan- dise orders. 4. Merchandise orders are recorded on a purchase order form. 6. Goods billed by suppliers are compared to purchase orders and receiving reports before being paid. 2. Goods are received only by warehouse employees. 5. Receiving reports are completed to indicate goods received. 3. The warehouse is locked and activities electronically monitored. Internal Control Principle 1. One office employee places all merchandise orders. 2. Goods are received only by warehouse employees. 3. The warehouse is locked and activities electronically monitored. 4. Merchandise orders are recorded on a purchase order form. 5. Receiving reports are completed to indicate goods received. Goods billed by suppliers are compared to purchase orders and 6. receiving reports before being paid