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h The following eight paragraphs describe control weaknesses in purchases and payroll business processes. Also listed are nine controls that may help regulate the weaknesses:
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The following eight paragraphs describe control weaknesses in purchases and payroll business processes. Also listed are nine controls that may help regulate the weaknesses: Required: In the blank next to each number, list the best control to address the system weakness. You will use each control only once and one control may not be used. [Choose] ABC Company's purchasing manager selected his brother-in-law as a vendor and received a kickback for providing the business [Choose ] B.S. Corporation ordered goods that receiving personnel stole. Receiving prepared a receiving report and sent it to accounts payable. The company unknowingly paid for the stolen goods [Choose ] The production manager at Bryan Manufacturing Company told the payroll department he had hired a new employee. On payday, the paymaster could not find the employee and upon investigation, found that the employee did not exist. [Choose ] Beecham Manufacturing Company ordered goods that were never received. The company, as a matter of standard policy, paid the invoice. [Choose) Northern Star Manufacturing Company's payroll department routinely distributed paychecks on payday. The payroll supervisor suddenly quit her job. On the next payday, the payroll department could not find employees to claim two paychecks. [Choose] Full Moon Manufacturing Company's production manager is unsure that the second shift employees are working all hours reported on the job time tickets. Receiving report signed by stores Independent paymaster to distribute paychecks Purchase order copy sent to accounts payable Requisition form prepared by requestor Vendor list approved independent of purchasing Timekeeping department reconciles time cards to job time summaries Imprest payroll bank account Receiving report copy sent to accounts payable s Separation of payroll and personnel departments [Choose ] Northern Star Manufacturing Company's payroll department routinely distributed paychecks on payday. The payroll supervisor suddenly quit her job. On the next payday, the payroll department could not find employees to claim two paychecks. [Choose ] Full Moon Manufacturing Company's production manager is unsure that the second shift employees are working all hours reported on the job time tickets. [Choose ] The internal auditor of Eastern Overboard Company prepares the bank reconciliation. He has difficulty managing the large number of outstanding checks at month-end in the bank reconciliation. Most of the outstanding checks are employee paychecks. Star Production Company received goods that were never ordered. The company paid the invoice. [Choose ] Step by Step Solution
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