Ruth's Video Store maintains the following policies with regard to purchases of new videotapes at each of
Question:
Ruth's Video Store maintains the following policies with regard to purchases of new videotapes at each of its branch stores:
1. Employees are required to take vacations, and duties of employees are rotated periodically.
2. Once each month a person from the home office visits each branch to examine the receiving records and to compare the inventory of video tapes with the accounting records.
3. Purchases of new tapes must be authorised by purchase order in the home office and paid for by the treasurer in the home office. Receiving reports are prepared in each branch and sent to the home office.
4. All new personnel receive a one-hour orientation on receiving and cataloging new video tapes.
5. The company maintains a perpetual inventory system that keeps track of all video tapes purchased, sold, and available.
Indicate by letter which of the following control procedures apply to each of the above policies (some may have several answers):
a. Authorisation
e. Periodic independent
b. Recording transactions verification
f. Separation of duties
c. Documents and records g. Sound personnel policies
Step by Step Answer:
Financial Accounting A Global Approach
ISBN: 9780395839867
1st Edition
Authors: Sidney J. Gray, Belverd E. Needles