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#1: Indicate whether each of the business practices listed below strengthens (s) or weakens (w) a company's system of internal controls. If it weakens the
#1: Indicate whether each of the business practices listed below strengthens (s) or weakens (w) a company's system of internal controls. If it weakens the internal control write an explanation of why it's a problem and how you would fix that problem. 1. Cashiers are not bonded (insured). 2. All payments are made with checks. 3. Employees discouraged from taking paid vacations. 4. Using pre-numbered sales tickets. 5. The same person opens incoming mail and posts information to the accounts receivable ledger. 6. The person who is authorized to sign checks approves purchase orders for payment. 7. Some cash payments are not recorded because checks are not pre-numbered. 8. There are no daily cash accounts by supervisors. 9. Only designated personnel are authorized to handle cash receipts. 10. Different individuals receive cash and record cash receipts. 11. Use remittance advice and cash register tapes. 12. Store cash in safes and bank vaults. 13. Treasurer compares total receipts to bank deposits daily. 14. Cash is locked in a safe overnight. 15. Employees who receive shipments of goods do not have access to the accounting records for merchandise. 16. Shipping documents are pre-numbered. 17. The bookkeeper does not have physical custody of assets./ 18. Only the treasurer of the company can sign checks
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