Roger Lemmon is the chief financial officer (CFO) for a large aviation parts supply company. In recent months, Roger has been alarmed at the increase in inventory losses. He is not sure whether parts orders are not being properly recorded or whether employees or outside individuals are stealing parts. Roger realizes that he needs to improve the control activities related to inventory. He wants to start with the detective controls. What are the two detective controls? Adequate documents and independent checks Segregation of duties and physical control Independent checks and segregation of duties Proper authorizations and physical control Maya Company has seen slow but steady growth over the past 10 years. Maya Company started small, and all of the employees were family members. However, the business is now big enough that it is important to start setting up a more sophisticated internal control structure, including segregation of duties. What are the three specific functions that must be kept separate? Physical possession, adjusting, posting Approving, recording, physical possession Recording, physical possession, posting Approving, evaluating, ordering In preparing a bank reconciliation, what is the proper treatment of a deposit in transit? Add to the reported cash balance in the bank statement Subtract from the reported cash balance in the bank statement Add to the reported cash balance in the company's books Subtract from the reported cash balance in the company's books