Sharon Coulson was recently hired as the new director of accounting at SunShine Minerals. Sharon's first responsibility was to examine the internal control procedures and implement stronger controls where she found weaknesses. Sharon found two weak nesses and implemented new controls in the following areas:
1. Keith was responsible for ordering, receiving, and paying for all supplies.
2. Karen was responsible for counting the cash, recording the daily sales and cash receipts in the journal, and making all the bank deposits.
Instructions
1. Indicate the two weaknesses Sharon found.
2. Explain the controls Sharon would likely put in place to protect against these weaknesses.
3. Discuss why these steps may not fully correct the weaknesses in the internal control procedures.