Practice Exercise 7-1

Match each of the following control activities with its appropriate description.

1. Assignment of responsibility

2. Segregation of duties

3. Documentation

4. Physical controls

5. Review and reconciliation

(a) All transactions should include original, detailed receipts.

(b) Undeposited cash should be stored in the company safe.

(c) Surprise cash counts are performed by internal audit.

(d) Responsibility for related activities should be assigned to specific employees.

(e) Cheque signers are not allowed to record cash transactions.