Listed below are five procedures followed by Eikenberry Company.Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.Procedure IC Good or Weak? Related Internal Control Principle1. Several individuals operate the cash register using the same register drawer. Select a weakness in internal control Select a control principle that is violated 2. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities. Select a weakness in internal control Select a control principle that is violated 3. Joe Cockrell writes checks and also records cash payment entries. Select a weakness in internal control Select a control principle that is violated 4. One individual orders inventory, while a different individual authorizes payments. Select a weakness in internal control Select a control principle that is violated 5. Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording. Select a weakness in internal control Select a control principle that is violated

Internal control principles include the standards of controls established in the conduct of business…

Answered: internal control principle is violated

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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Listed below are five procedures followed by Eikenberry Company.

Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.

Procedure	IC Good or Weak?	Related Internal Control Principle
1.	Several individuals operate the cash register using the same register drawer.	Select a weakness in internal control	Select a control principle that is violated
2.	A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.	Select a weakness in internal control	Select a control principle that is violated
3.	Joe Cockrell writes checks and also records cash payment entries.	Select a weakness in internal control	Select a control principle that is violated
4.	One individual orders inventory, while a different individual authorizes payments.	Select a weakness in internal control	Select a control principle that is violated
5.	Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.	Select a weakness in internal control	Select a control principle that is violated

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