1. Procedure 2---Two large transactions were identified as being unusual. Investigation determined that they were authorized acquisitions of fixed assets. They were both correctly recorded.
2. Procedure 10b(1)---A purchase order had not been attached to a vendor’s in voice. The purchase order was found in a separate file and determined to be approved and approp0riate.
3. Procedure 10b(5)---Six vendors, invoices were not initialed as being internally verified. Three actual misclassifications existed. The controller explained that he often did not review codings because of the competence of the accounting clerk doing the coding, and was surprised at the mistakes.