A physical count of inventory is required even though the company uses the perpetual inventory system. What can be said of this procedure?

a.It is a good example of physical controls.

b.It is a good example of independent checks on performance.

c.It is a good example of authorization of transactions and other business activities.

d.It is a good example of documentation adequacy.

1. Which of the following is a sound internal control procedure for cash disbursements?

   a.paying with cash as often as possible to minimize administrative effort and bank fees

   b.paying with petty cash to expedite the payment process

   c.marking supporting documents when paid to prevent duplicate payment

   d.designating an authorized cheque signer who has cash record-keeping responsibilities