Final answer:
The question asks which option is not an internal control procedure in the conversion cycle. The answer is the use of computerized systems since it's a tool to support internal controls, not a control procedure itself. Other options listed are indeed internal control procedures.
Step-by-step explanation:
The question relates to the internal control procedures within the conversion cycle of a company. The conversion cycle refers to the process of converting raw materials into finished goods through manufacturing. There are several internal controls that companies should implement to ensure efficiency, accuracy, and security in this cycle.
Segregation of duties is an internal control that involves separating responsibilities among different employees to reduce the risk of errors or fraud. Physical controls over assets refer to the safeguards used to protect a company's physical property from theft or misuse, such as locks and surveillance cameras. Reconciliation of accounts ensures that the amounts recorded in the company's books and ledgers are consistent with the actual transaction data.
However, the use of computerized systems, while important for enhancing efficiency and accuracy, is not an internal control procedure but rather a tool that may support internal controls. Computerized systems can be part of an effective control environment when they are integrated with controls such as access controls, data encryption, and regular system audits.