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  • Each Situation Below Describes An Internal Control Weakness in The

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    Each scenario describes an internal control weakness in a company's cash payments process. Scenario a violates the segregation of duties principle by having the warehouse clerk responsible for ordering inventory and advising accounting to pay suppliers. Scenario b violates the documentation principle by not requiring signatures to approve payments. Scenario c violates the physical security principle by storing blank checks and a check signing machine in an unlocked room. Scenario d violates the authorization principle by allowing multiple people to approve purchase orders.

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    Each scenario describes an internal control weakness in a company's cash payments process. Scenario a violates the segregation of duties principle by having the warehouse clerk responsible for ordering inventory and advising accounting to pay suppliers. Scenario b violates the documentation principle by not requiring signatures to approve payments. Scenario c violates the physical security principle by storing blank checks and a check signing machine in an unlocked room. Scenario d violates the authorization principle by allowing multiple people to approve purchase orders.

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    4 views1 page

    Each Situation Below Describes An Internal Control Weakness in The

    Uploaded by

    Freelance Worker
    Each scenario describes an internal control weakness in a company's cash payments process. Scenario a violates the segregation of duties principle by having the warehouse clerk responsible for ordering inventory and advising accounting to pay suppliers. Scenario b violates the documentation principle by not requiring signatures to approve payments. Scenario c violates the physical security principle by storing blank checks and a check signing machine in an unlocked room. Scenario d violates the authorization principle by allowing multiple people to approve purchase orders.

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    © All Rights Reserved
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    Each situation below describes an internal control

    weakness in the #2708


    Each situation below describes an internal control weakness in the cash payments process.
    Identify which of the five internal control principles is violated, explain the weakness, and then
    suggest a change that would improve internal control. a. The warehouse clerk is responsible for
    ordering inventory when levels become low and advising the accounting department to issue a
    payment to the supplier when ordered goods are received. b. For each purchase, the
    accountant compares the purchase order (prepared by the purchasing manager) to the
    receiving report (prepared by warehouse employees) and then attaches these documents to the
    corresponding supplier invoice and files them by supplier name. The accountant then prepares
    a check, which the owner merrily signs and sends to the mail clerk for mailing. c. The check-
    signing machine is stored with a supply of blank checks in the lunch room closet. d. Purchase
    orders can be approved by the purchasing manager, accountant, or warehouse supervisor,
    depending on who is least busy.View Solution:
    Each situation below describes an internal control weakness in the

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