Section IV Match the internal control term with the definition by placing the letter of the term in the appropriate numbered line. (A) Attaching asset tags (1) Prenumbered source documents (B) Bank reconciliation () Securing authorized signature stamps (C) Bonding of key employees (K) Separation (or segregation) of duties (D) Cross-training, especially of key functions (L) Single custody (one custodian) (E) Deposits made daily and intact (M) Supervision (F) Dual custody (two custodians) (N) Regular independent reviews (G) Forced vacations (0) Voucher system used for making payment (H) Management approval (P) Written policies and procedures 1. 2. 3 In the absence of (or inability to implement) certain internal controls the overriding control is review and monitoring by management or the company owner. Access to assets and access to the books should not be vested in the same person. Employees should not be allowed to continuously perform the same functions without someone else periodically taking over Employees should be trained to perform various duties so that the company is not dependent on a few key employees Duties should be clearly spelled out in order to hold employees accountable This helps to prevent fraud and to perform employee performance evaluations. Accomplishes two main objectives: 1) background checks are performed and 2) limits the amount of a loss due to a fraud 4. 5 6 7 8 Key documents (i.e., checks, receipts, and purchase orders) must be accounted for by the company to help prevent personal, unauthorized use by employees A bank reconciliation must be performed regularly by a person not processing cash receipts or payments. Certain activities must not be performed by only one person lie, receiving and opening payments by mail and access to bank vaults.) 10. Al deposits should be made by a person other than the cashier) daily and intact. 11. Only original source documents (i.e., invoices) should be accepted when authorizing payment 9