Each of the following situations has an internal control weakness:
a. Retail stores such as Target and Best Buy receive a significant portion of their sales revenue in cash. At the end of each day, sales clerks compare the cash in their own register with the record of sales kept within the register. They then forward the cash to a Brinks security officer for deposit in the bank.
b. The office supply company from which Martin Audiology Service purchases cash receipt forms recently notified Martin that the last-shipped sales receipts were not prenumbered. Derek Martin, the owner, replied that he did not use the receipt numbers, so the omission is unimportant to him.
c. Paul Allen, who has no known sources of outside income, has been a trusted employee of Chapparall Cosmetics for 20 years. Allen performs all cash-handling and accounting duties, including opening the mail, preparing the bank deposit, accounting for cash and accounts receivable, and preparing the bank reconciliation. Allen has just purchased a new Lexus. Linda Altman, owner of the company, wonders how Allen can afford the new car on his salary.
Required
Identify the missing internal control characteristics in each situation.