Listed below are five procedures followed by Eikenberry Company. 1. Several individuals operate the cash register using the same register drawer. 2. A monthly bank
Listed below are five procedures followed by Eikenberry Company.
1.Several individuals operate the cash register using the same register drawer.2.A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.3.Joe Cockrell writes checks and also records cash payment entries.
4.One individual orders inventory, while a different individual authorizes payments.5.Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.
Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated.
Procedure
IC Good or Weak?
Related Internal Control Principle
1.select an option
Weak
Good
select a principle
Documentation Procedures
Establishment of Responsibility
Segregation of Duties
Human Resource Controls
Independent Internal Verification
Physical Controls
2.select an option
Weak
Good
select a principle
Human Resource Controls
Physical Controls
Establishment of Responsibility
Segregation of Duties
Independent Internal Verification
Documentation Procedures
3.select an option
Weak
Good
select a principle
Establishment of Responsibility
Segregation of Duties
Documentation Procedures
Human Resource Controls
Physical Controls
Independent Internal Verification
4.select an option
Weak
Good
select a principle
Segregation of Duties
Human Resource Controls
Independent Internal Verification
Documentation Procedures
Physical Controls
Establishment of Responsibility
5.select an option
Weak
Good
select a principle
Physical Controls
Human Resource Controls
Segregation of Duties
Independent Internal Verification
Establishment of Responsibility
Documentation Procedures
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