What internal control or procedure(s) would provide protection against the following threats?A production order was initiated for a product that was already overstocked in the company’s warehouse.A production employee stole items of work-in-process inventoryA production employee entered a materials requisition form into the system in order to steal $300 worth of parts from the raw materials storeroomA parts storeroom clerk issued parts in quantities 10% lower than those indicated on several materials requisitions and stole the excess quantities.A production manager stole several expensive machines and covered up the loss by submitting a form to the accounting department indicating that the missing machines were obsolete and should be written off as worthless.

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Answered: What internal control or procedure(s)…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter7A: Internal Controls

Section: Chapter Questions

Problem 4SPB

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What internal control or procedure(s) would provide protection against the following threats?

A production order was initiated for a product that was already overstocked in the company’s warehouse.
A production employee stole items of work-in-process inventory
A production employee entered a materials requisition form into the system in order to steal $300 worth of parts from the raw materials storeroom
A parts storeroom clerk issued parts in quantities 10% lower than those indicated on several materials requisitions and stole the excess quantities.
A production manager stole several expensive machines and covered up the loss by submitting a form to the accounting department indicating that the missing machines were obsolete and should be written off as worthless.

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