Listed below are five procedures followed by Gilmore Company.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. Use the table below. Procedure IC Good or Weak? Related Internal Control Principle 1. Employees are required to take vacations. Select a weakness in internal control GoodWeak Select a control principle that is violated Human Resource ControlsIndependent Internal VerificationEstablishment of ResponsibilityPhysical ControlsSegregation of DutiesDocumentation Procedures 2. Any member of the sales department can approve credit sales. Select a weakness in internal control WeakGood Select a control principle that is violated Segregation of DutiesDocumentation ProceduresEstablishment of ResponsibilityPhysical ControlsIndependent Internal VerificationHuman Resource Controls 3. Paul Jaggard ships goods to customers, bills customers,and receives payment from customers. Select a weakness in internal control WeakGood Select a control principle that is violated Documentation ProceduresSegregation of DutiesPhysical ControlsEstablishment of ResponsibilityHuman Resource ControlsIndependent Internal Verification 4. Total cash receipts are compared to bank deposits daily by someone who has no other cash responsibilities. Select a weakness in internal control GoodWeak Select a control principle that is violated Human Resource ControlsIndependent Internal VerificationSegregation of DutiesPhysical ControlsDocumentation ProceduresEstablishment of Responsibility 5. Time clocks are used for recording time worked by employees. Select a weakness in internal control WeakGood Select a control principle that is violated Independent Internal VerificationPhysical ControlsSegregation of DutiesEstablishment of ResponsibilityDocumentation ProceduresHuman Resource Controls

Listed below are five procedures followed by Gilmore Company.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. Use the table below. Procedure IC Good or Weak? Related Internal Control Principle 1. Employees are required to take vacations. Select a weakness in internal control GoodWeak Select a control principle that is violated Human Resource ControlsIndependent Internal VerificationEstablishment of ResponsibilityPhysical ControlsSegregation of DutiesDocumentation Procedures 2. Any member of the sales department can approve credit sales. Select a weakness in internal control WeakGood Select a control principle that is violated Segregation of DutiesDocumentation ProceduresEstablishment of ResponsibilityPhysical ControlsIndependent Internal VerificationHuman Resource Controls 3. Paul Jaggard ships goods to customers, bills customers,and receives payment from customers. Select a weakness in internal control WeakGood Select a control principle that is violated Documentation ProceduresSegregation of DutiesPhysical ControlsEstablishment of ResponsibilityHuman Resource ControlsIndependent Internal Verification 4. Total cash receipts are compared to bank deposits daily by someone who has no other cash responsibilities. Select a weakness in internal control GoodWeak Select a control principle that is violated Human Resource ControlsIndependent Internal VerificationSegregation of DutiesPhysical ControlsDocumentation ProceduresEstablishment of Responsibility 5. Time clocks are used for recording time worked by employees. Select a weakness in internal control WeakGood Select a control principle that is violated Independent Internal VerificationPhysical ControlsSegregation of DutiesEstablishment of ResponsibilityDocumentation ProceduresHuman Resource Controls

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter3: Internal Control Over Financial Reporting: Responsibilities Of Management And The External Auditor

Section: Chapter Questions

Problem 35RQSC: Assume that management is gathering evidence as part of its process for assessing the effectiveness...

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Procedure	IC Good or Weak?	Related Internal Control Principle
1.	Employees are required to take vacations.	Select a weakness in internal control GoodWeak	Select a control principle that is violated Human Resource ControlsIndependent Internal VerificationEstablishment of ResponsibilityPhysical ControlsSegregation of DutiesDocumentation Procedures
2.	Any member of the sales department can approve credit sales.	Select a weakness in internal control WeakGood	Select a control principle that is violated Segregation of DutiesDocumentation ProceduresEstablishment of ResponsibilityPhysical ControlsIndependent Internal VerificationHuman Resource Controls
3.	Paul Jaggard ships goods to customers, bills customers, and receives payment from customers.	Select a weakness in internal control WeakGood	Select a control principle that is violated Documentation ProceduresSegregation of DutiesPhysical ControlsEstablishment of ResponsibilityHuman Resource ControlsIndependent Internal Verification
4.	Total cash receipts are compared to bank deposits daily by someone who has no other cash responsibilities.	Select a weakness in internal control GoodWeak	Select a control principle that is violated Human Resource ControlsIndependent Internal VerificationSegregation of DutiesPhysical ControlsDocumentation ProceduresEstablishment of Responsibility
5.	Time clocks are used for recording time worked by employees.	Select a weakness in internal control WeakGood	Select a control principle that is violated Independent Internal VerificationPhysical ControlsSegregation of DutiesEstablishment of ResponsibilityDocumentation ProceduresHuman Resource Controls

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