Indicate whether each control is preventive

Reference no: EM133612390

Case: Several controls currently used at the Lions Inn are listed below: Control 1. The Lions Inn uses a cash register. 2. The employee time clock is located just outside the manager's office. 3. An external auditor conducts a surprise cash audit quarterly. 4. Only the front office supervisor may approve room sales allowances. 5. Each room attendant's work in cleaning rooms is inspected by a housekeeping supervisor. 6. Cash receipts are deposited intact and on a daily basis. 7. The internal auditor prepares the monthly bank reconciliation. 8. Vegetables are stored in coolers at the proper temperatures. 9. Supplier invoices are reconciled to the suppliers' monthly statements. 10. Cash drawers must be closed after each sale in all revenue centers.

Required: Indicate whether each control is preventive (P) or detective (D) and whether it is an accounting (AC) or administrative (AD) control. If you believe a given control may be both P and D or AC and AD, provide your reasoning.

Reference no: EM133612390

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