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8 MARKS QUESTION 5 The following are internal control procedures over cash payments in place at Harts Music Supplies. 1. Cheques are signed using an

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8 MARKS QUESTION 5 The following are internal control procedures over cash payments in place at Harts Music Supplies. 1. Cheques are signed using an automated cheque signing machine. The machine is stored in a safe that requires two keys to open it. The Controller and Vice President Finance, each have custody of one of the keys. 2. Only original vendor invoices with unique invoice numbers are approved for payment. Faxes and photocopies are not acceptable, and if a vendor sends two invoices with the same number, they are returned and the vendor is asked to re-issue one of them with a different invoice number. 3. The Purchasing Manager is authorized to approve purchase orders, the Receiving Manager approves invoices after matching them to receiving reports, an Accounts Payable assistant records the purchase invoices, the Accounts Payable manager prepares cheques and the VP Finance signs them. 4. The computer system produces a log showing how many errors have been made and corected by each Accounting Assistant in recording vendor invoices. Instructions For each internal control, identify which type of control is described, and describe a weakness 8 MARKS QUESTION 5 The following are internal control procedures over cash payments in place at Harts Music Supplies. 1. Cheques are signed using an automated cheque signing machine. The machine is stored in a safe that requires two keys to open it. The Controller and Vice President Finance, each have custody of one of the keys. 2. Only original vendor invoices with unique invoice numbers are approved for payment. Faxes and photocopies are not acceptable, and if a vendor sends two invoices with the same number, they are returned and the vendor is asked to re-issue one of them with a different invoice number. 3. The Purchasing Manager is authorized to approve purchase orders, the Receiving Manager approves invoices after matching them to receiving reports, an Accounts Payable assistant records the purchase invoices, the Accounts Payable manager prepares cheques and the VP Finance signs them. 4. The computer system produces a log showing how many errors have been made and corected by each Accounting Assistant in recording vendor invoices. Instructions For each internal control, identify which type of control is described, and describe a weakness

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