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Problem 8-1A Analyzing internal control LO C1 Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. a. Chi Han receives all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts. b To ensure the company retreat would not be cut, the manager of Lavina Company decided to save money by canceling the external audit of internal controls. C. Sutton Company has two employees handling acquisitions of inventory. One employee places purchase orders and pays vendors. The second employee receives the merchandise. Ben Shales prides himself on hiring quality workers who require little supervision. As office manager, d. Ben gives his employees full discretion over their tasks and for years has seen no reason to perform independent reviews of their work. e. Nori Nozumi posts all patient charges and payments at the Hopeville Medical Clinic. Each night Nori backs up the computerized accounting system but does not password lock her computer