A company employs three accounts payable clerks and one treasurer. Their responsibilities are as follows:EmployeeResponsibilityClerk 1Reviews vendor invoices for proper signature approvalClerk 2Enters vendor invoices into the accounting system and verifies payment termsClerk 3Posts entered vendor invoices to the accounts payable ledger for payment and mails checks.TreasurerReviews the vendor invoices and signs each check.Which of the following would indicate a weakness in the company’s internal control?a. Clerk 1 opens all of the incoming mail.b. Clerk 2 reconciles the accounts payable ledger with the general ledger monthly.c. Clerk 3 mails the checks and remittances after they have been signed.d. The treasurer uses a stamp for signing checks.

Internal control: Internal control is a process which ensures continuous reliability of…

Answered: A company employs three accounts…

Accounting Information Systems

10th Edition

ISBN:9781337619202

Author:Hall, James A.

Publisher:Hall, James A.

Chapter3: Ethics, Fraud, And Internal Control

Section: Chapter Questions

Problem 11P

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A company employs three accounts payable clerks and one treasurer. Their responsibilities are as follows:

Employee	Responsibility
Clerk 1	Reviews vendor invoices for proper signature approval
Clerk 2	Enters vendor invoices into the accounting system and verifies payment terms
Clerk 3	Posts entered vendor invoices to the accounts payable ledger for payment and mails checks.
Treasurer	Reviews the vendor invoices and signs each check.

Which of the following would indicate a weakness in the company’s internal control?
a. Clerk 1 opens all of the incoming mail.
b. Clerk 2 reconciles the accounts payable ledger with the general ledger monthly.
c. Clerk 3 mails the checks and remittances after they have been signed.
d. The treasurer uses a stamp for signing checks.

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