The text describes six internal control activities. List four of them and provide a specific example of each one


Control Activity Example
Authorization general (purchase of inventory when level drops) or specific (credit approval beyond normal limit)
Segregation of functions separate authorization from processing separate custody of assets from record keeping
Supervision required when separation of duties is not possible, such as opening the mail (cash receipts)
Accounting records maintain an adequate audit trail
Access controls maintain physical security
Independent verification bank reconciliation, physical inventory count

Business

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