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PROBLEM 1

Match the internal control in thefirst column with

1. Applicable control activities
   1. Adequate separation of duties
   2. Adequate documents and records
   3. Proper authorization of transactions
   4. Physical controls over assets and documents
   5. Independent checks on performance
2. Transaction related audit objective (not-assigned, forclass discussion only)

	INTERNAL CONTROL	a. CONTROL ACTIVITY	b. TRANSACTION- RELATED AUDIT OBJECTIVE(S)
1.	Sales invoices are matched with shipping documents by thecomputer system and an exception report is generated.
2.	Receiving reports are prenumbered and accounted for on a dailybasis.
3.	Sales invoices are independently verified before being sent tocustomers.
4.	Payments by check are received in the mail by the receptionist,who lists the checks and restrictively endorses them.
5.	Labor hours for payroll are reviewed for reasonableness by thecomputer system.
6.	Checks are signed by the company president, who compares thechecks with the underlying supporting documents.
7.	Unmatched shipping documents are accounted for on a dailybasis.
8.	The computer system verifies that all payroll payments have avalid employee identification number assigned by the human resources department at the time of hiring.
9.	The accounts receivable master file is reconciled to the generalledger on a monthly basis.