Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. At Tico Company, Julia and Trevor alternate lunch hours. Julia is the petty cash custodian, but if someone needs petty cash when she is at lunch, Trevor fills in as custodian Marker Theater has a computerized order-taking system for its tickets. The system is backed up once a year Chi Han receives all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts. Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company e The owner of Super Pharmacy uses a check software/printer to prepare checks, making it difficult for anyone to alter the amount of a check. The check software/printer, which is not password protected, is on the owner's desk in an office that contains company checks and is normally unlocked. Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year). May 1 Prepared a company check for $488 to establish the petty cash fund. 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. a. Paid $124.80 for janitorial expenses. b. Paid $101.88 for miscellaneous expenses. c. Paid postage expenses of $69.60. d. Paid $91.44 to Facebook for advertising expense. e. Counted $30.68 remaining in the petty cashbox. 16 Prepared a company check for $2ee to increase the fund to $600. 31 The petty cashier reports that $426.19 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. f. Paid postage expenses of $64.48. 9. Reimbursed the office manager for mileage expense, $51.33. n. Paid $53.ee in delivery expense for products to a customer, terms FOB destination. 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $550. Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. At Tico Company, Julia and Trevor alternate lunch hours. Julia is the petty cash custodian, but if someone needs petty cash when she is at lunch, Trevor fills in as custodian Marker Theater has a computerized order-taking system for its tickets. The system is backed up once a year Chi Han receives all incoming customer cash receipts for her employer and posts the customer payments to their respective accounts. Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company e The owner of Super Pharmacy uses a check software/printer to prepare checks, making it difficult for anyone to alter the amount of a check. The check software/printer, which is not password protected, is on the owner's desk in an office that contains company checks and is normally unlocked. Kiona Co. set up a petty cash fund for payments of small amounts. The following transactions involving the petty cash fund occurred in May (the last month of the company's fiscal year). May 1 Prepared a company check for $488 to establish the petty cash fund. 15 Prepared a company check to replenish the fund for the following expenditures made since May 1. a. Paid $124.80 for janitorial expenses. b. Paid $101.88 for miscellaneous expenses. c. Paid postage expenses of $69.60. d. Paid $91.44 to Facebook for advertising expense. e. Counted $30.68 remaining in the petty cashbox. 16 Prepared a company check for $2ee to increase the fund to $600. 31 The petty cashier reports that $426.19 cash remains in the fund. A company check is drawn to replenish the fund for the following expenditures made since May 15. f. Paid postage expenses of $64.48. 9. Reimbursed the office manager for mileage expense, $51.33. n. Paid $53.ee in delivery expense for products to a customer, terms FOB destination. 31 The company decides that the May 16 increase in the fund was too large. It reduces the fund by $50, leaving a total of $550