Problem 4 (20 points) Several controls currently used at the Lions Inn are listed below: Preventive/ Accounting/ Control Detective Administrative 1. The Lions Inn uses a cash register. 2. The employee time clock is located just outside the manager's office. 3. An external auditor conducts a surprise cash audit quarterly. 4. Only the front office supervisor may approve room sales allowances. 5. Each room attendant's work in cleaning rooms is inspected by a housekeeping supervisor. 6. Cash receipts are deposited intact and on a daily basis. 7. The internal auditor prepares the monthly bank reconciliation. 8. Vegetables are stored in coolers at the proper temperatures. 9. Supplier invoices are reconciled to the suppliers' monthly statements. 10. Cash drawers must be closed after each sale in all revenue 8. Vegetables are stored in coolers at the proper temperatures. 9. Supplier invoices are reconciled to the suppliers' monthly statements. 10. Cash drawers must be closed after each sale in all revenue centers. Required: Indicate whether each control is preventive or detective and whether it is an accounting or administrative control. HOMEWORK HINT: Preventative controls are implemented before a problem occurs, while detective controls are designed to discover problems and to monitor preventative controls (page 618 - Additional Classification of Controls). Accounting controls deal with the first two objectives: safeguarding assets & ensuring the accuracy and reliability of accounting data. Administrative controls include the last two objectives: promoting operational efficiency and encouraging adherence to managerial policies (page 591 - Definition & Objectives of Internal Control)