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PPO V TROS! AP-6 Control activities and related assertions ** Several categories of control activities are identified in the chapter using the following framework A.

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PPO V TROS! AP-6 Control activities and related assertions ** Several categories of control activities are identified in the chapter using the following framework A. Authorization B. Performance reviews C. Information processing controls C1. Computer general controls C2 Computer application controls C3. IT dependent manual controls D. Physical controls E, Segregation of Duties Following are specific control procedures prescribed by Trusty Inc, a public company. 1. The computer must match information from a vendor's invoices with information from receiving and information from the purchase order before a check is issued. 2. Two authorized signatures are required on every check for payment of purchases over $100,000 3. Each month the credit manager carefully reviews the computer generated aged trial balance of accounts receivable to identify past- due balances and follows up for collection. 4. A supervisor must approve overtime work. 5. The computer assigns sequential numbers to sales invoices used in the billing system 6. The computer verifies the mathematical accuracy of each voucher and prints an exception report for items with mathematical errors. 7. Employee payroll records are kept on a computer file that can only be accessed through by certain terminals and are password pro- tected. 8. An accounting supervisor reviews journal entries periodically for reasonableness of account classifications. 9. Two individuals open the mail and prepare a prelisting of checks received. Then the checks received from customers and related remittance advices are separated in the mallroom and subsequently processed by different individuals. 10. All vouchers must be stamped paid on payment. II. On a quarterly basis, the controller reviews a computer comparison of warranty expenses and actual warranty dams 12. Computer programmers are not allowed in the computer room. 13. The computer will not complete the processing of a batch when the accounts receivable control account does not match the total of the subsidiary ledgers. Required Indicate the category of control activities applicable to each procedure using the framework above. Identify an assertion to which each procedure pertains

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