Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control principle violated or followed for each procedure. 1. The same employee requests, records, and makes payment for purchases of inventory. 2. The company saves money by having employees involved in operations perform the only review of internal controls. 3. Time is saved by not updating records for use of supplies. 4. The recordkeeper is not allowed to write checks or initiate EFTs. 5. Each salesclerk is in charge of her own cash drawer.
Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control principle violated or followed for each procedure. 1. The same employee requests, records, and makes payment for purchases of inventory. 2. The company saves money by having employees involved in operations perform the only review of internal controls. 3. Time is saved by not updating records for use of supplies. 4. The recordkeeper is not allowed to write checks or initiate EFTs. 5. Each salesclerk is in charge of her own cash drawer.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Determine whether each procedure described below is an internal control strength or weakness; then identify
the internal control principle violated or followed for each procedure.
1. The same employee requests, records, and makes payment for purchases of inventory.
2. The company saves money by having employees involved in operations perform the only review of
internal controls.
3. Time is saved by not updating records for use of supplies.
4. The recordkeeper is not allowed to write checks or initiate EFTs.
5. Each salesclerk is in charge of her own cash drawer.
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