Reference no: EM132824812

Problem 1: Which of the following is a good example of a preventive control?

Option 1: All the other alternatives are good preventive controls

Option 2: Segregating the duties of approving transactions and recording transactions

Option 3: Approvals of purchase orders

Option 4: Keeping cash locked in a safe

Option 5: Supervisory review of payroll before payroll cheques are distributed at month-end

Problem 2: A large department store allows customers to open accounts and make credit purchases. There are 5,000 customer accounts. To collect evidence as part of the audit of Accounts Receivable, an auditor of the department store might write to a sample of the customers asking them to confirm their account balances. Such a confirmation process is designed to test management's assertions of

Option 1: matching

Option 2: timeliness

Option 3: ownership and valuation

Option 4: None of the other alternatives are correct

Option 5: going-concern