Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control violated or followed for each procedure. 1. The same employee requests, records, and makes payment for purchases of inventory. 2. Each salesclerk is in charge of their own cash drawer. 3. The company insures important assets during good and bad economic times. 4. Time is saved by not updating records for use of supplies. 5. The company saves money by having employees involved in operations perform the only review of internal controls.
Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control violated or followed for each procedure. 1. The same employee requests, records, and makes payment for purchases of inventory. 2. Each salesclerk is in charge of their own cash drawer. 3. The company insures important assets during good and bad economic times. 4. Time is saved by not updating records for use of supplies. 5. The company saves money by having employees involved in operations perform the only review of internal controls.
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter7A: Internal Controls
Section: Chapter Questions
Problem 2SEB
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Internal Control:- It is a system in which management ensures that each process and department work properly as per the protocol decided and also ensures controlled working.
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