Each situation below describes an internal control weakness in the cash payments process. Identifywhich of the five internal control principles is violated, explain the weakness, and then suggest achange that would improve internal control.a. The warehouse clerk is responsible for ordering inventory when levels become low and advising the accounting department to issue a payment to the supplier when ordered goods arereceived.b. For each purchase, the accountant compares the purchase order (prepared by the purchasing manager) to the receiving report (prepared by warehouse employees) and then attachesthese documents to the corresponding supplier invoice and files them by supplier name. Theaccountant then prepares a check, which the owner merrily signs and sends to the mail clerkfor mailing.c. The check-signing machine is stored with a supply of blank checks in the lunch room closet.d. Purchase orders can be approved by the purchasing manager, accountant, or warehouse supervisor, depending on who is least busy.
Each situation below describes an internal control weakness in the cash payments process. Identify
which of the five internal control principles is violated, explain the weakness, and then suggest a
change that would improve internal control.
a. The warehouse clerk is responsible for ordering inventory when levels become low and advising the accounting department to issue a payment to the supplier when ordered goods are
received.
b. For each purchase, the accountant compares the purchase order (prepared by the purchasing manager) to the receiving report (prepared by warehouse employees) and then attaches
these documents to the corresponding supplier invoice and files them by supplier name. The
accountant then prepares a check, which the owner merrily signs and sends to the mail clerk
for mailing.
c. The check-signing machine is stored with a supply of blank checks in the lunch room closet.
d. Purchase orders can be approved by the purchasing
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