Gary's Great Cars purchases high-performance auto parts from a Nebraska vendor. Dave Simon, the accountant for Gary's, verifies receipt of merchandise and then, prepares, signs, and mails the check to the vendor. Requirements 1. Identify the internal control weakness over cash payments. 2. What could the business do to correct the weakness? Requirement 1. Identify the internal control weakness over cash payments. The following are the weaknesses in internal control. (Only complete the necessary answer boxes.) Requirement 2. What could the business do to correct the weakness? In order to correct the weakness, the following could be put into place: (Only complete the necessary answer boxes.) Requirement 1. Identify the internal control weakness over cash payments. The following are the weaknesses in internal control. (Only complete the necessary answer boxes.) The accountant has access to cash received from customers. The company did not perform a background check on the accountant. The same person is responsible for verifying receipt of merchandise, authorizing payment, and preparing the payment. There is no security guard on duty. Requirement 2. What could the business do to correct the weakness? In order to correct the weakness, the following could be put into place: (Only complete the necessary answer boxes.) A security guard should be hired. Purchase orders, utilizing authority from operations, should be used to authorize inventory purchases. Require that payments for merchandise be signed by the person who verified receipt of the merchandise. The accountant should not place the purchase order. The accountant should receive the receipt of goods and purchase order forms from other departments before issuing payment. The receipt of goods should be verified by someone other than the accountant or the person authorizing the purchase order. Gary's Great Cars purchases high-performance auto parts from a Nebraska vendor. Dave Simon, the accountant for Gary's, verifies receipt of merchandise and then, prepares, signs, and mails the check to the vendor. Requirements 1. Identify the internal control weakness over cash payments. 2. What could the business do to correct the weakness? Requirement 1. Identify the internal control weakness over cash payments. The following are the weaknesses in internal control. (Only complete the necessary answer boxes.) Requirement 2. What could the business do to correct the weakness? In order to correct the weakness, the following could be put into place: (Only complete the necessary answer boxes.) Requirement 1. Identify the internal control weakness over cash payments. The following are the weaknesses in internal control. (Only complete the necessary answer boxes.) The accountant has access to cash received from customers. The company did not perform a background check on the accountant. The same person is responsible for verifying receipt of merchandise, authorizing payment, and preparing the payment. There is no security guard on duty. Requirement 2. What could the business do to correct the weakness? In order to correct the weakness, the following could be put into place: (Only complete the necessary answer boxes.) A security guard should be hired. Purchase orders, utilizing authority from operations, should be used to authorize inventory purchases. Require that payments for merchandise be signed by the person who verified receipt of the merchandise. The accountant should not place the purchase order. The accountant should receive the receipt of goods and purchase order forms from other departments before issuing payment. The receipt of goods should be verified by someone other than the accountant or the person authorizing the purchase order
