Current Attempt in Progress The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. (a) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. Procedure Weakness Principle Violated Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. The store manager personally approves all payments before she signs and issues checks. 30). The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to j/Coursus 105 30). The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. 3 (i). The purchase is documented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register. After payment bills are "hled"in a paid invoice folder .edu/courses/7705/assignments/54679 documented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register. After payment, bills are "filed in a paid invoice folder The company accountant who records cash transactions also prepares the bank reconciliation and reports any discrepancies to the owner e Textbook and Media Attempts:0 of 3 used Save for Later Submit Answer Procedure Weakness Principle Violated 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. Use of cash instead of checks; no prenumbered invoices Unauthorized employees making purchases Checks are not stored in a secure area Filing does not prevent a bill from being paid more than once The bank reconciliation is not independently prepared The approval and payment of bills is done by the same individual The store manager personally approves all payments before she signs and issues checks. 3 ). The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. 308). The purchase is documented by Procedure Weakness Principle Violated 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. The store manager personally approves all payments before she signs and issues checks. Unauthorized employees making purchases Use of cash instead of checks; no prenumbered invoices Filing does not prevent a bill from being paid more than once The bank reconciliation is not independently prepared The approval and payment of bills is done by the same individual Checks are not stored in a secure area 30). The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. 3 (). The purchase is documented by .es/7705/assignments/54679 Procedure Weakness Principle Violated 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register The store manager personally approves all payments before she signs and issues checks. Physical controls Documentation procedures Independent internal verification Human resource controls Establishment of responsibility Segregation of duties 3(). The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. 301). The purchase is documented by Principle Violated Weakness Procedure 1 Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. The store manager personally approves all payments before she signs and issues checks. The approval and payment of bills is done by the same individual The bank reconciliation is not independently prepared Filing does not prevent a bill from being paid more than once Unauthorized employees making purchases Checks are not stored in a secure area Use of cash instead of checks; no prenumbered invoices 3). The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. 3011). The purchase is documented by Procedure Weakness Principle Violated Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. The store manager personally approves all payments before she signs and issues checks Documentation procedures Independent internal verification Establishment of responsibility Physical controls Segregation of duties Human resource controls 30). The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. 301). The purchase is documented by edu/courses/7705/assignments/54679 are authorized to purchase goods for resale by disbursing cash from the register. 3 (ii). Filing does not prevent a bill from being paid more that once Checks are not stored in a secure area The bank reconciliation is not independently prepared The approval and payment of bills is done by the same individual Use of cash instead of checks; no prenumbered invoices Unauthorized employees making purchases The purchase is documented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register. After payment bills are "hled in a paid invoice folder. The company accountant who records cash transactions also prepares the bank reconciliation and reports any discrepancies to the owner. /courses/7705/assignments/54679 pur amount that was paid. The employee then signs the paper and puts it in the register. After payment. bills are "filed in a paid invoice folder. Filing does not prevent a bill from being paid more than once Use of cash instead of checks; no prenumbered invoices The approval and payment of bills is done by the same individual The bank reconciliation is not independently prepared Unauthorized employees making purchases Checks are not stored in a secure area The company accountant who records cash transactions also prepares the bank reconciliation and reports any discrepancies to the owner. e Textbook and Media Attempts: 0 of 3 used Save for Later Submit Answer Send to Gradebook Bu/courses/7705/assignments/54679 PUILUUT amount that was paid. The employee then signs the paper and puts it in the register. After payment, bills are filed in a paid invoice folder. Segregation of duties Physical controls Documentation procedures Establishment of responsibility Human resource controls Independent internal verification The company accountant who records cash transactions also prepares the bank reconciliation and reports any discrepancies to the owner e Textbook and Media Attempts: 0 of 3 used Save for Later Submit Answer Send to Gradebook es/7705/assignments/54679 pur G C amount that was paid. The employee then signs the paper and puts it in the register After payment, bills are "filed in a paid invoice folder. The company accountant who records cash transactions also prepares the bank reconciliation and reports any discrepancies to the owner The bank reconciliation is not independently prepared Use of cash instead of checks; no prenumbered invoices Checks are not stored in a secure area Filing does not prevent a bill from being paid more than once Unauthorized employees making purchases The approval and payment of bills is done by the same individual e Textbook and Media Attempts: 0 of 3 used Save for Later Submit Answer Send to Gradebook rses/7705/assignments/54679 purcracu amount that was paid. The employee then signs the paper and puts it in the register. After payment, bills are "filed" in a paid invoice folder. The company accountant who records cash transactions also prepares the bank reconciliation and reports any discrepancies to the owner. Segregation of duties Establishment of responsibility Documentation procedures Physical controls Independent internal verification Human resource controls e Textbook and Media Attempts: 0 of 3 used Save for Later Submit Answer Send to Gradebook