Listed below are five procedures followed by Eikenberry Company. 1. Several individuals operate the cash register using the same register drawer. 2. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities. 3. Joe Cockrell writes checks and also records cash payment entries. 4. One individual orders inventory, while a different individual authorizes payments. 5. Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording. 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. 1. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties 2. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties 3. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties 4. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties 5. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties

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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Listed below are five procedures followed by Eikenberry Company.

1.		Several individuals operate the cash register using the same register drawer.
2.		A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.
3.		Joe Cockrell writes checks and also records cash payment entries.
4.		One individual orders inventory, while a different individual authorizes payments.
5.		Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.

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.

1. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties

2. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties

3. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties

4. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties

5. Weak or Good? / Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, Segregation of Duties

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