1.When Mr Clark orders materials for his machine building-rebuilding plant, he sends a duplicate purchase order to the receiving department. During the delivery of materials, Mr. Smith, the receiving clerk, records the receipt of shipment on this purchase order. After recording, mr. Smith sends the purchase order to the accounting department, where it is used to record materials purchased and accounts payable. The materials are transported to the storage area by forklifts. The additional purchased quantities are recorded on storage records

2.Every day, hundreds of employees clock in using time cards at Generous Motors Corporation. The timekeepers collect these cards once a week and deliver them to the computer department. There, the data on these time cards are entered into the computer. The information entered into the computer is used in the preparation of the labor cost distribution records, the payroll journal and the payroll checks. The treasurer Mrs.Wan, compares the payroll journal with the payroll checks, sign the checks and return them to Mr. Santos, the supervisor of the computer department. The payroll checks are distributed to the employees by Mr. Santos.

3.The smallest branch of super fresh cosmetics in Iloilo city employs Mary Santos, the branch manager and her sales assistant, Jane Reyes. The branch uses as bank account in Iloilo city to pay expenses. The account is kept in the name of "Super Fresh Cosmetics - Special Account". To pay expenses, checks must be signed by Mary Santos or by the treasure of super fresh cosmetics, Juan Dy.Mary receives the cancelled checks and bank statements. She reconciles the branch account herself and files cancelled checks and bank statements in her records. She also periodically prepares reports of cash disbursements and sends them to the home offices.

Required:

a.List the weakness in the internal control for each of the above. To identify the weaknesses.

b.For each weakness, sate the type(s) of misstatements(s) that is (are) likely to result. Be as specific as possible.

c.How would you improve internal controls for each of the three companies?