E7-3 The following situations suggest a strength or a weakness in internal control. Identify each as strength
Question:
E7-3 The following situations suggest a strength or a weakness in internal control. Identify each as strength or weakness, and give the reason for your answer.
a. Cash received over the counter is controlled by the sales clerk, who rings up the sale and places the cash in the register. The sales clerk matches the total recorded on the control tape stored in the register to each day's cash sales.
b. The vice president who signs checks does not examine the payment packet because the accounting department has matched the invoice with other supporting documents.
c. Top managers delegate all internal control measures to the accounting department,
d. The accounting department orders merchandise and approves invoices for payment.
e. The operator of a computer has no other accounting or cash-handling duties.
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones