(Learning Objective 24: Evaluating internal control over cash payments) Beautiful Meadows Golf Company manufactures a popular line...

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(Learning Objective 24: Evaluating internal control over cash payments) Beautiful Meadows Golf Company manufactures a popular line of golf clubs. Beautiful Meadows Golf employs 173 workers and keeps their employment records on time sheets that show how many hours the employee works each week. On Friday the shop foreman collects the time sheets, checks them for accuracy, and delivers them to the payroll department for preparation of paycheques. The treasurer signs the paycheques and returns the cheques to the payroll department for distribution to the employees.

Identify the main internal control weakness in this situation, state how the weakness can hurt Beautiful Meadows Golf, and propose a way to correct the weakness.

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Financial Accounting International Financial Reporting Standards

ISBN: 9780273777809

1st Global Edition

Authors: Walter T Harrison, Charles Horngren, Bill Thomas, Themin Suwardy

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