Listed below are seven errors or problems which might occur in the processing of cash transactions. Also shown is a list of internal control principles. Evaluate each possible error and cite a principle that is listed that would reduce the probability of the error occurring. If none of the principles given will correct the problem, select "None. "If you think more than one principle is appropriate, list all principles that apply.

		Possible Errors or Problems		Internal Control Principles
1.		An employee steals the cash collected from a customer for an account receivable and conceals this theft by issuing a credit memorandum indicating that the customer returned the merchandise.		select principle of internal control Establishment of Responsibility and Segregation of DutiesEstablishment of Responsibility and Documentation ProceduresHuman Resource ControlsEstablishment of Responsibility and Independent Internal VerificationIndependent Internal Verification and Human Resource ControlsSegregation of Duties and Human Resource ControlsSegregation of Duties and Documentation ProceduresDocumentation ProceduresPhysical Controls and Documentation ProceduresPhysical ControlsEstablishment of Responsibility and Physical ControlsPhysical Controls and Independent Internal VerificationSegregation of DutiesPhysical Controls and Human Resource ControlsIndependent Internal VerificationDocumentation Procedures and Independent Internal VerificationNoneDocumentation Procedures and Human Resource ControlsEstablishment of Responsibility and Human Resource ControlsEstablishment of ResponsibilitySegregation of Duties and Independent Internal VerificationSegregation of Duties and Physical Controls
2.		A small fire destroys 3 days of cash receipts.		select principle of internal control Segregation of Duties and Physical ControlsDocumentation Procedures and Human Resource ControlsDocumentation ProceduresSegregation of DutiesEstablishment of Responsibility and Human Resource ControlsDocumentation Procedures and Independent Internal VerificationPhysical Controls and Independent Internal VerificationEstablishment of Responsibility and Documentation ProceduresPhysical Controls and Human Resource ControlsSegregation of Duties and Independent Internal VerificationPhysical Controls and Documentation ProceduresEstablishment of Responsibility and Independent Internal VerificationNoneEstablishment of Responsibility and Segregation of DutiesPhysical ControlsEstablishment of ResponsibilityIndependent Internal VerificationSegregation of Duties and Human Resource ControlsSegregation of Duties and Documentation ProceduresEstablishment of Responsibility and Physical ControlsHuman Resource ControlsIndependent Internal Verification and Human Resource Controls
3.		The official designated to sign checks is able to steal blank checks and issue them without fear of detection.		select principle of internal control Human Resource ControlsPhysical ControlsEstablishment of ResponsibilitySegregation of Duties and Independent Internal VerificationDocumentation Procedures and Human Resource ControlsSegregation of Duties and Physical ControlsEstablishment of Responsibility and Physical ControlsPhysical Controls and Independent Internal VerificationSegregation of Duties and Human Resource ControlsEstablishment of Responsibility and Documentation ProceduresDocumentation Procedures and Independent Internal VerificationIndependent Internal VerificationDocumentation ProceduresSegregation of Duties and Documentation ProceduresSegregation of DutiesPhysical Controls and Documentation ProceduresIndependent Internal Verification and Human Resource ControlsNoneEstablishment of Responsibility and Independent Internal VerificationEstablishment of Responsibility and Human Resource ControlsPhysical Controls and Human Resource ControlsEstablishment of Responsibility and Segregation of Duties
4.		A salesclerk in serving customers often rings up a sale for less than the actual amount and then keeps the additional cash collected from the customer.		select principle of internal control NoneDocumentation Procedures and Independent Internal VerificationPhysical Controls and Human Resource ControlsEstablishment of ResponsibilityIndependent Internal Verification and Human Resource ControlsSegregation of Duties and Physical ControlsPhysical Controls and Independent Internal VerificationHuman Resource ControlsEstablishment of Responsibility and Human Resource ControlsSegregation of Duties and Documentation ProceduresEstablishment of Responsibility and Physical ControlsEstablishment of Responsibility and Independent Internal VerificationEstablishment of Responsibility and Segregation of DutiesIndependent Internal VerificationSegregation of DutiesPhysical ControlsDocumentation ProceduresSegregation of Duties and Independent Internal VerificationDocumentation Procedures and Human Resource ControlsEstablishment of Responsibility and Documentation ProceduresSegregation of Duties and Human Resource ControlsPhysical Controls and Documentation Procedures
5.		Three cashiers use one cash register drawer and the cash in the drawer is often short of the balance kept on hand.		select principle of internal control Establishment of Responsibility and Segregation of DutiesPhysical Controls and Documentation ProceduresDocumentation Procedures and Independent Internal VerificationHuman Resource ControlsIndependent Internal Verification and Human Resource ControlsPhysical Controls and Human Resource ControlsEstablishment of Responsibility and Documentation ProceduresEstablishment of ResponsibilityPhysical Controls and Independent Internal VerificationSegregation of DutiesSegregation of Duties and Independent Internal VerificationEstablishment of Responsibility and Physical ControlsDocumentation Procedures and Human Resource ControlsSegregation of Duties and Documentation ProceduresDocumentation ProceduresPhysical ControlsSegregation of Duties and Human Resource ControlsEstablishment of Responsibility and Human Resource ControlsSegregation of Duties and Physical ControlsIndependent Internal VerificationEstablishment of Responsibility and Independent Internal VerificationNone
6.		Each cashier counts his own register drawer each day and verbally reports the results to the supervisor.		select principle of internal control Physical Controls and Documentation ProceduresIndependent Internal Verification and Human Resource ControlsDocumentation Procedures and Human Resource ControlsEstablishment of Responsibility and Segregation of DutiesEstablishment of Responsibility and Documentation ProceduresEstablishment of Responsibility and Physical ControlsSegregation of Duties and Human Resource ControlsPhysical Controls and Human Resource ControlsEstablishment of ResponsibilitySegregation of Duties and Physical ControlsIndependent Internal VerificationSegregation of Duties and Documentation ProceduresEstablishment of Responsibility and Human Resource ControlsEstablishment of Responsibility and Independent Internal VerificationHuman Resource ControlsPhysical ControlsPhysical Controls and Independent Internal VerificationDocumentation Procedures and Independent Internal VerificationDocumentation ProceduresNoneSegregation of DutiesSegregation of Duties and Independent Internal Verification
7.		Cashiers with over 5 years experience are not bonded.		select principle of internal control Documentation ProceduresDocumentation Procedures and Independent Internal VerificationIndependent Internal Verification and Human Resource ControlsHuman Resource ControlsSegregation of DutiesSegregation of Duties and Documentation ProceduresSegregation of Duties and Physical ControlsSegregation of Duties and Independent Internal VerificationEstablishment of Responsibility and Documentation ProceduresEstablishment of Responsibility and Segregation of DutiesIndependent Internal VerificationPhysical Controls and Human Resource ControlsEstablishment of ResponsibilityPhysical ControlsNonePhysical Controls and Independent Internal VerificationDocumentation Procedures and Human Resource ControlsPhysical Controls and Documentation ProceduresEstablishment of Responsibility and Physical ControlsEstablishment of Responsibility and Human Resource ControlsSegregation of Duties and Human Resource ControlsEstablishment of Responsibility and Independent Internal Verification