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Problem 1: Which is the control activity where the responsibility for executing a transaction, recording the transaction and maintaining custody of the assets resulting from the transaction are assigned to different individuals or departments?
A. Independent checks.
B. Physical controls.
C. Segregation of duties.
D. Performance reviews.
Problem 2: Which one of the following correctly describes the two types of external confirmation request for trade receivables?
A. Positive: only reply if balances agree; negative: only reply if balances do not agree.
B. Positive: reply irrespective of agreement; negative: only reply if balances do not agree.
C. Positive: reply only if balances disagree; negative; reply irrespective of agreement
D. Positive: only reply if balances do not agree; negative: only reply if balances agree.
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