Requirement a. For each control, identify which element of the five categories of control activities is applicable (separation of duties, proper authorization, adequate documents or records, physical control over assets and records, or independent checks on performance). Internal Controls Control Activity 1. Approved purchase orders are required for all acquisitions of goods. Prenumbered receiving reports are prepared as support for acquisitions and 2. numerically accounted for. Dates on receiving reports are compared with vendors' invoices before entry 3. into the acquisitions journal. 4. Account classifications are reviewed by someone other than the preparer. 5. Vendors' invoices are recalculated before payment. Adequate documents or records Independent checks on performance Physical control over assets and records Proper authorization Separation of duties 6. All checks are signed by the owner or manager The authorized signer compares data on supporting documents with checks 7. and electronic funds transfer authorizations. Checks are mailed by the owner or a person under her supervision after 8. signing. All supporting documents are cancelled after checks are signed or electronic 9. funds transfers are approved. The accounts payable master file is updated, balanced, and reconciled to the 10. general ledger monthly