1. Imagine that you are the head coach of a college sports team. One of your most important objectives is to win as many games as possible. Describe some controls that you would implement to help achieve the objective of winning as many games as possible.
2. Perhaps your most important post-graduation objective is to get a job. Describe some control activities that you would pursue to help achieve this objective.
3. Describe some controls that parents use to keep their homes safe for themselves and their children.
4. Many retail companies experience customer and employee theft (or what is referred to a shrinkage) that equals 1%-2% of their total sales. For a company such as Walmart, this seemingly small percentage of total sales translates to billions of dollars. What types of internal controls might Walmart use to reduce its shrinkage?
5. If you were a restaurant owner, what internal controls would you implement to help maintain control of your cash?
6. As a form of internal control, what documents would you review prior to paying an invoice received from a supplier?
7. What internal controls would you implement to help maintain control of your credit sales and accounts receivable?
8. Why do companies take a physical count of their inventory on hand at least once per year?
9. Why do companies use sequential prenumbering for documents such as checks, sales invoices, and purchase orders?
10. How can an annual budget function as a form of internal control?