Answer:
1. Physical control
2. Segregation of duties
3. Documentation
4. Physical control
5. Authorization
Explanation:
1. Cash is locked in a safe overnight.
Principle of internal control: Physical control
Physical control: Only authorized persons should have access to certain assets.
2. Employees who receive shipments of goods do not have access to the accounting records for merchandise.
Principle of internal control: Segregation of duties
Segregation of duties: There should be different personnel for different aspects of the transactions.
3. Shipping documents are pre-numbered.
Principle of internal control: Documentation
Documentation: Proper documentation should be maintained for the transactions.
4. The bookkeeper does not have physical custody of assets:
Principle of internal control: Physical control
Physical control: Only authorized persons should have access to certain assets.
5. Only the treasurer of the company can sign checks.
Principle of internal control: Authorization
Authorization: The transactions are authorized by the responsible/authorized persons.
