E5 1) G. sound personnel practices 2) E. periodic independent verification 3) A. authorization / f. separation of duties 4) G. sound personnel practices / physical controls 5) B. recording transactions / c. documents and records P2 a) Authorization: sales invoices are numbered and made in triplicate. One copy is sent to warehouse, and in order to pick up printer the customer must trade copies with warehouse attendant to insure correctness. b) Recording transactions: sales invoices made in triplicate. Warehouse attendant signs inventory transfer sheet for new inventory coming in. c) Documents and records: accountant tracks all pre-numbered invoice sheets daily to make sure all are accounted for. Accountant uses these to properly maintain a perpetual inventory system. d) Physical controls: warehouse remains locked, only authorized individuals have access. e) Periodic independent verification: auditor does physical count every three months as comparison against records taken from perpetual inventory. f)
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