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Erin Company recently changed its system of internal control over cash disbursements. The system includes the following features. 1. Instead of being unnumbered and manually
Erin Company recently changed its system of internal control over cash disbursements. The system includes the following features. 1. Instead of being unnumbered and manually prepared, all checks must now be prenumbered and written by using the new checkwriter purchased by the company. 2. Before a check can be issued, each invoice must have the approval of Karen Noonan, the purchasing agent, and Tom Fah, the receiving department supervisor. 3. Checks must be signed by either Carl Merfeld, the treasurer, or Bonnie Kurt, the assistant treasurer. Before signing a check, the signer is expected to compare the amounts of the check with the amounts on the invoice. 4. After signing a check, the signer stamps the invoice
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