During the evaluation of the internal control system of the audited company, you noticed the following:

Ahmed is the vice president of finance. Salem is the senior accountant and AMNA is the assistant o

Ahmed regularly relied on AMNA to reconcile the cash shortfalls and to balance the books.

Ahmed and AMNA primarily hid the fraud by making false entries on the Company's general journa

and understating liabilities and sales. AMNA maintained binders that detailed numerous false journ

reclassified Company funds--with no supporting documentation and no legitimate explanation. AM

were included in the Company's accounting books and records.

Ahmed and AMNA were able to hide the important frauds in part because the Company did not ad

Salem's internal controls policy required Salem to approve invoices of AED 5,000 or more for payi

Salem also had little or no educational background or experience in accounting or finance. Many

prevent Ahmed and AMNA from processing large transfers and cashier's checks outside of the ac

In addition, many account reconciliations were not prepared, maintained, or reviewed as part of

Salem's computerized accounting system was almost 30 years old.

Required:

The audit manager ask you to:

a. List three major internal controls that were absent within Salem Corporation's internal control syster

b. List three internal controls that should have been implemented to ensure proper controls over