Internal Control Weaknesses Identify the internal control weaknesses in each of the following situations.

a. Rodney Williams, a football star at the local university, was hired by D. A. Mount to work in the accounting department of Mount Electronics during summer vacation. Providing summer jobs is one way Mount supports the team. After a week of training, Williams opened the mail containing checks from customers, recorded the payment in the books, and prepared the bank deposit slip.

b. Jim Sanchez manages a local franchise of a major 24-hour convenience store. Sanchez brags that he keeps labor costs well below the average for such stores by operating with only one clerk. He has not granted a pay increase in 4 years. He loses a lot of clerks, but he can find replacements.

c. Martha McGuire operates an Exxon service station. Because it takes much extra time for atten- dants to walk from the gas pumps to the inside cash register, McGuire placed a locked cash box next to the pumps and gave each attendant a key. Cash and credit card slips are placed in the cash box. Each day the amounts are counted and entered in total into the cash register.

d. Lazlo Perconte trusts his employees. The former manager purchased fidelity bonds on employees who handle cash. Perconte decided that such bonds showed a lack of trust, so he ceased purchas- ing them. Besides, the money saved helped Perconte meet his budget for the year.