Question
Identify which control activity is violated in each of the following situations and explain how the situation creates an oppurtunity for fraud or inappropriate accounting
Identify which control activity is violated in each of the following situations and explain how the situation creates an oppurtunity for fraud or inappropriate accounting practices.
1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.
2. Greg Mursky orders merchandize for Ross Company; he also receives merchandize and authorizes payment for merchandize.
3. Several clerks at Terando's Grocery use the same cash register drawer.
4. Disbursement Vouchers (DVs) supported by reproduced copy of pertinent documents were presented during DVs processing.
5. Cash collections made by the cashier were deposited every other day instead of next working day as a matter of policy.
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