Question
In each pair of the following situations ( two cash payments and two cash receipts), one set of internal controls is better then the other.
In each pair of the following situations ( two cash payments and two cash receipts), one set of internal controls is better then the other. Evaluate the internal controls in ech situation as strong or weak, and give the reason for your answer.
A. Garrett Colton Construction policy calls for construction cupervisors to request the equipment needed for their jobs. The home office then purchases the equipment and has it shipped to the construction site.
B. Sellers Inc. policy calls for project supervisors to purchase equipment need for jobs. The supervisors then submit the paid receipts to the home office for reimbursement. This policy enables supervisors to get the equipment quickly and keep construction jobs moving.
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