| Procedure | | Weakness | | Principle Violated |
| 1. | | Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. | | select the weakness in internal control Cash is not independently countedThe accountant should not handle cashInability to establish responsibility for cash on a specific clerkCashiers are not bonded and background checks are not conductedCash is not adequately protected from theft | | select the control principle Documentation proceduresSegregation of dutiesHuman resource controlsIndependent internal verificationPhysical controlsEstablishment of responsibility |
| 2. | | All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer. | | select the weakness in internal control Cash is not independently countedThe accountant should not handle cashCashiers are not bonded and background checks are not conductedInability to establish responsibility for cash on a specific clerkCash is not adequately protected from theft | | select the control principle Physical controlsDocumentation proceduresSegregation of dutiesHuman resource controlsEstablishment of responsibilityIndependent internal verification |
| 3. | | To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stock room until it is deposited in the bank. | | select the weakness in internal control The accountant should not handle cashInability to establish responsibility for cash on a specific clerkCash is not independently countedCashiers are not bonded and background checks are not conductedCash is not adequately protected from theft | | select the control principle Segregation of dutiesHuman resource controlsIndependent internal verificationDocumentation proceduresPhysical controlsEstablishment of responsibility |
| 4. | | At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. | | select the weakness in internal control Inability to establish responsibility for cash on a specific clerkCashiers are not bonded and background checks are not conductedCash is not independently countedThe accountant should not handle cashCash is not adequately protected from theft | | select the control principle Human resource controlsPhysical controlsDocumentation proceduresSegregation of dutiesIndependent internal verificationEstablishment of responsibility |
| 5. | | The company accountant makes the bank deposit and then records the days receipts. | | select the weakness in internal control The accountant should not handle cashCash is not independently countedInability to establish responsibility for cash on a specific clerkCashiers are not bonded and background checks are not conductedCash is not adequately protected from theft | | select the control principle Documentation proceduresPhysical controlsSegregation of dutiesHuman resource controlsIndependent internal verificationEstablishment of responsibility |
