Chapter 5, Problem 5.2E

To determine

(a)

Introduction:

Internal control is a tool implemented by an organization to ensure integrity of financial information and prevent fraud. It helps in improving operational efficiency of financial reports with accuracy and timeliness.

To state:

If person A's method of making one employee responsible for taking orders and accepting payment while other employees prepare order is justified or not.

To determine

(b)

Introduction:

Internal control is a tool implemented by an organization to ensure integrity of financial information and prevent fraud. It helps in improving operational efficiency of financial reports with accuracy and timeliness.

If person A's method justified to balance the cash in the drawer with the amount of cash sales recorded by the employee in the cash register to the penny every time-no exception.

To determine

(c)

Introduction:

Internal control is a tool implemented by an organization to ensure integrity of financial information and prevent fraud. It helps in improving operational efficiency of financial reports with accuracy and timeliness

If person A's method justified where he catches an employee putting a case of single-serving tea bags in her car and asking her if she was putting tea bags on right shelf.