E2B. Some conditions for internal control follow.a. Transactions are executed in accordance with management's general or specificauthorization.b. Transactions are recorded as necessary to permit preparation of financial statementsand maintain accountability for assets.c. Access to assets is permitted only as allowed by management.d. At reasonable intervals, the records of assets are compared with the existing assets.David Pinto, who operates a small grocery store, has established the following policieswith regard to the checkout cashiers:1. Each cashier has his or her own cash drawer, to which no one else has access.2. Cashiers may accept checks for purchases under $50 with proper identification. Forchecks over $50, they must receive approval from Pinto.3. Every sale must be rung up on the cash register and a receipt given to the customer.Each sale is recorded on a tape inside the cash register.4. At the end of each day, Pinto counts the cash in the drawer and compares it with theamount on the tape inside the cash register.Match the conditions for internal control to cach of the policies listed.

Answered: Match the conditions for internal…

Business

Accounting

Match the conditions for internal control to each of the policies listed.

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter9: Auditing The Revenue Cycle.

Section: Chapter Questions

Problem 22RQSC

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