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