E8.3 (LO 1, 2) The following control procedures are used in Mendy Lang's Boutique Shoppe for cash lisbursements. 1. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. 2. The store manager personally approves all payments before signing and issuing checks. 3. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 4. After payment, bills are filed in a paid invoice folder. 5. The company checks are unnumbered. Instructions a. For each procedure, explain the weakness in internal control, and identify the internal control prin- ciple that is violated. b. For each weakness, suggest a change in the procedure that will result in good internal control.

E8.3 (LO 1, 2) The following control procedures are used in Mendy Lang's Boutique Shoppe for cash lisbursements. 1. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. 2. The store manager personally approves all payments before signing and issuing checks. 3. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 4. After payment, bills are filed in a paid invoice folder. 5. The company checks are unnumbered. Instructions a. For each procedure, explain the weakness in internal control, and identify the internal control prin- ciple that is violated. b. For each weakness, suggest a change in the procedure that will result in good internal control.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.1P

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The following control procedures are used in Mendy Lang’s Boutique Shoppe for cash disbursements. 1.The company accountant prepares the bank reconciliation and reports any discrepancies to the owner.2.The store manager personally approves all payments before signing and issuing checks.3. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register.4. After payment, bills are filed in a paid invoice folder.5. The company checks are unnumbered.Instructions (a) For each procedure, explain the weakness in internal control, and identify the internal control principle that is violated.(b) For each weakness, suggest a change in the procedure that will result in good internal control.
Submit it in excel form E8.3
Instructions (a) For each procedure, explain the weakness in anternal control and iden ify the control principle that is violated (b) For each weakness, suggesta charze in the procedure that will resuit in good interua. control. E7-4 The following control procedures are used in Eunny's Boutique Shoppe for cash disbursements. res 1. Each week, 100 company checks are left in an unmarked envelove on a shelf behind the cash register. 2. The store manager personally approves all payments before she signs and issues checks. 3. The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. The purchase is docu- mented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register. 4. After payment,…
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