For the given scenario, identify the weakness or weaknesses in internal control and opposite the identified weaknessor weaknesses, enumerate the control procedure/s that you will recommend to avoid or mitigate the risk of loss:A small branch of Avon Cosmetics in Tuao, Cagayan employs Amelia Rodriguez as Branch Manager and Mary Gonzalesas her sales assistant. The Branch uses a bank account in Tuao, Cagayan to pay for expenses in the name of AvonCosmetics - Special Account. To pay expenses, checks must be signed by Amelia Rodriguez or John Dee, the treasurerof Avon Cosmetics. Amelia receives the cancelled checks and bank statements. she reconciles the branch accountherself and files cancelled checks and bank statements in her records. She also periodically prepares reports of cashdisbursements and sends them to thehome office in Makati.

Internal control is a process, performed by a board of directors of business, management and other…

For the given scenario, identify the weakness or weaknesses in internal control and opposite the identified weakness or weaknesses, enumerate the control procedure/s that you will recommend to avoid or mitigate the risk of loss:

For the given scenario, identify the weakness or weaknesses in internal control and opposite the identified weakness or weaknesses, enumerate the control procedure/s that you will recommend to avoid or mitigate the risk of loss:

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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Question

For the given scenario, identify the weakness or weaknesses in internal control and opposite the identified weakness
or weaknesses, enumerate the control procedure/s that you will recommend to avoid or mitigate the risk of loss:
A small branch of Avon Cosmetics in Tuao, Cagayan employs Amelia Rodriguez as Branch Manager and Mary Gonzales
as her sales assistant. The Branch uses a bank account in Tuao, Cagayan to pay for expenses in the name of Avon
Cosmetics - Special Account. To pay expenses, checks must be signed by Amelia Rodriguez or John Dee, the treasurer
of Avon Cosmetics. Amelia receives the cancelled checks and bank statements. she reconciles the branch account
herself and files cancelled checks and bank statements in her records. She also periodically prepares reports of cash
disbursements and sends them to thehome office in Makati.

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