transco printers make printers for personal computers and maintains a factory outlet showroom through which it sells its products to the public. the companys management has a set up system of internal controls ove the inventory printers to prevent theft and to ensure the accuracy of the accounting recordsAll printers in inventory at the factory outlet are kept in a secured warehouse behind the showroom, except for the sample printers on display. Only authorized personnel may enter the warchouse. When a customer buys a printer, a sales invoice is written in triplicate by the cashier and is marked "paid." The sales invoices are sequentially numbered, and all must be accounted for. The cashier sends the pink copy of the completed invoice to the warchouse, gives the blue copy to the customer, and keeps the green copy. The customer drives around to the warchouse entrance. The warehouse attendant takes the blue copy of the invoice from the customer and gives the customer the printer and the pink copy of the invoice.

The company maintains a perpetual inventory system for the printers at the outlet. The warehouse attendant at the outlet signs an inventory transfer sheet for each printer received. An accountant at the factory is assigned responsibility for maintaining the inventory records based on copies of the inventory transfer sheets and the sales invoices. The records are updated daily and may be accessed by computer but not modified by the sales personnel and the warehouse attendant. The accountant also sees that all prenumbered inventory transfer sheets are accounted for and compares copies of them with the ones signed by the warehouse attendant. Once every three months, the company's internal auditor takes a physical count of the printer inventory and compares the results with the perpetual inventory records.

All new employees are required to read a sales and inventory manual and attend a two$-$hour training session about the internal controls. They must demonstrate that they can perform the functions required of them.

REQUIRED

$1.$Give an example of how each of the following control activities is applied to internal control over inventory at Transco Printers:

a$.$Authorization

e$.$Periodic independent verification

b$.$Recording transactions

f$.$Separation of dutics

c$.$Documents and records

g$.$Sound personnel practices

d$.$Physical controls

$2.$ACCOUNTING CONNECTION $\backslash (\backslash$boldsymbol$\{$p$\}\backslash )$Can the described system protect against an employee who picks up a printer and carries it off when leaving work?