The following is a list of control activities or things that create strong control environment.

1. Hire competent ethical employees

2. Keep cash locked up

3. Have job descriptions

4. Ensure all cash receipts are deposited daily

5. Limit purchases to only authorized personnel

6. Ensure staff take vacations

7. Establish a code of conduct and follow it

8. Have a security system in place

9. Ensure applicable human resource policies are in place

Which of the following correctly classify the items as a control activity or part of the control environment?

Control Activity: 1, 3, 7, 9; Control Environment: 2, 4, 5, 6, 8

Control Activity: 1, 2, 5, 6, 8; Control Environment: 3, 4, 7, 9

Control Activity: 2, 4, 5, 7, 8, 9; Control Environment: 1, 3, 6

Control Activity: 2, 4, 5, 6, 8; Control Environment: 1, 3, 7, 9

Control Activity: 1, 2, 3, 4, 5; Control Environment: 6, 7, 8, 9

Control Activity: 2, 4, 5, 7, 9; Control Environment: 1, 3, 6, 8