Exercise 7.3 These procedures are used in "The Boutique" for cash disbursements (payments). 1. Checks are stored in an unmarked envelope on a shelf behind the cash register. 2. The store manager approves all payments before she write, signs and sends checks. 3. The store buys "used" items for resale. All employees may buy "resale" items by paying cash from the register. The employee documents a purchase on a piece of paper, writing the cost and description of the item - then signing the paper - and putting it in the register. 4. After paying the invoices (bills) the bookkeeper places them in the suppliers folder. 5. The bookkeeper prepares the bank deposits and cash records and reports any discrepancies directly to the owner. Instructions For each, explain the weakness in internal control. Then suggest a SPECIFIC change in procedure that will result in better internal control. (If you need more space - add it by hitting the space bar INSIDE the tables row or column.) Weakness Identified SPECIFIC Change Recommended 4. After paying the invoices (bills) the bookkeeper places them in the suppliers folder. 5. The bookkeeper prepares the bank deposits and cash records and reports any discrepancies directly to the owner. Instructions For each, explain the weakness in internal control. Then suggest a SPECIFIC change in procedure that will result in better internal control. (If you need more space - add it by hitting the space bar INSIDE the tables row or column.) Weakness Identified SPECIFIC Change Recommended 1. 2. 3. 4. 5. 5