At Muse Company, checks are not prenumbered because both the purchasing agent and the treasurer are authorized to issue checks. Each signer has access to unissued checks kept in an unlocked file cabinet. The purchasing agent pays all bills pertaining to goods purchased for resale. Prior to payment, the purchasing agent determines that the goods have been received and verifies the mathematical accuracy of the vendors invoice. After payment, the invoice is filed by vendor name and the purchasing agent then records the transaction. The treasurer pays all other bills following approval by authorized employees. After payment, the treasurer stamps all bills paid, files them by payment date, and records the checks. Martinez Company maintains one checking account that is reconciled by the treasurer.

Instructions

1. List the weaknesses and internal control principles, which have been violated.