Exercise 6-3 (Algo) Internal control strengths and weaknesses LO C1Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control principle violated or followed for each procedure.An employee cannot approve their own request for purchases of inventory.Several salesclerks share the same cash drawer.Employees that handle easily transferable assets such as cash are bonded.The company devotes resources towards keeping accurate accounting records for machinery.The company saves money by having employees involved in operations perform the only review of internal controls.

The objective of the question is to identify whether each procedure is an internal control strength…

Answered: Exercise 6-3 (Algo) Internal control…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Exercise 6-3 (Algo) Internal control strengths and weaknesses LO C1

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.

An employee cannot approve their own request for purchases of inventory.
Several salesclerks share the same cash drawer.
Employees that handle easily transferable assets such as cash are bonded.
The company devotes resources towards keeping accurate accounting records for machinery.
The company saves money by having employees involved in operations perform the only review of internal controls.

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