CLICK HERE TO SAVE YOUR WORK L45 B D E F 1 L 1 C H 33 K 34 35 Question 1 - Fraud, internal controls and cash (14 marks) 36 Identify the control activity violated in each of the scenarios below by entering the code letter in the space provided 37 Control activities 38 A. Assignment of responsibility 39 B. Segregation of duties 40 C. Documentation 41 D. Physical controls 42 E. Review and reconciliation 43 44 ) The accountant has custody of checks and recordkeeping responsibilities. 45 ) Company does not take physical count of inventory and compare it to accounting records. 46 H) Four employees at EFG grocery store operate the same cash register. 47 iv) Sales invoices are not prenumbered 48 ) A shoe store is experiencing a sharp increase in inventory theft because some people walk into the store, try on some shoes, 49 and leave the store under the premise of taking a call outside without returning to pay for the shoes. 50 vi) Photocopies are used to record transactions at ABC company if the original documents are not available. 51 vii) Sometimes the warehouse is not locked. 52 53 54 Question 2 - Statement of cash flows (16 marks) 55 The comparative unclassified statement of financial position for Black Ltd. follows: 56 BLACK LTD. 57 Statement of Financial Position 58 December 31 2019 2.018.00 59 60 Assets 27 15. Sheet1 New 1