Each of the following situations has an internal control weakness.

Solve each situation in each requirement.

Possible Problems (1.) Loss of revenue due to low-quality work. (2.) Lost data; unhappy customers; failure to collect receivables. (3.) Lost sales due to delay of product development. (4.) Theft of cash. (5.) Theft of cash and inefficiency. (6.) Unreliable financial statements and lost credibility. a. Creative Solutions Applications develops custom programs to customer's specifications. Recently, development of a new program stopped while the programmers redesigned Creative Solutions Applications' accounting system. Creative Solutions Applications' accountants could have performed this task. b. Ken Gillette has been your trusted employee for 24 years. Gillette performs all cash - handling and accounting duties. Gillette just purchased a new luxury car and a new home in an expensive suburb. As owner of the company, you wonder how Gillette can afford these luxuries because Gillette's salary is only $30,000 a year and is their only source of income. c. Mickey Hardwoods, a private company, falsified sales and inventory figures in order to get an important loan. The loan went through, but Mickey Hardwoods later went bankrupt and could not repay the bank. d. The internal auditor of Kane's Grooming Goods recently notified Kane's Grooming Goods that its sales receipts documents were not prenumbered. Sally Kane, the owner, replied that the company never uses receipt numbers. e. Discount stores such as Bolgeo make most of their sales for cash, with the remainder in credit card sales. To reduce expenses, one store manager ceases purchasing fidelity bonds on the cashiers. f. Lewis' Corndogs keeps all cash receipts in an empty box for a week, because the owner likes to go to the bank on Tuesdays when it is most convenient. Req. 1 Req. 2 Possible Problem Req. 3 Solution a