Leslie Lim, an employee of Bormack Manufacturing Company, prepares journal vouchers for general ledger entries. Due to the large number of voided journal vouchers caused by errors, the journal vouchers are not prenumbered by the printer; rather, Leslie fills them in as she prepares each journal voucher. Biweekly, Leslie posts the journal vouchers to the general ledger and any necessary subsidiary accounts. Bimonthly, she reconciles the subsidiary accounts to their control accounts in the general ledger and makes sure the general ledger accounts balance.

The accounts department has an open-concept physical layout.Employees from other departments, contract workers and suppliers may simply walk to any of the accounting employees' workstation to claim petty cash, submit documents or collect cheques.

Required:

Discuss any potential weaknesses in physical controls in the above scenario. (Hint: Identify and explain the weaknesses according to the 6 categories of physical controls)

1. Subject: Information Systems & Financial Analytics

Diploma in Accountancy & Finance