More Info a. Jade Applications has decided that one way to cut costs in the upcoming year is to fire the external auditor. The business believes that the internal auditor should be able to efficiently monitor the company's internal controls. b. In an effort to minimize the amount of paperwork, Ross Homes has decided that it will not keep copies of customer invoices related to sales revenue. Ross believes that this effort will minimize the amount of data storage the company will have to pay for. c. Elle Bee, a trusted employee for many years, has never taken a vacation. The owner believes that he's lucky that she is so committed to her job. d. The Medicine Chest Company keeps a small petty cash fund to handle small cash transactions. Because no one wants to volunteer to be the custodian, the business manager has decided that all employees should have access to the petty cash. She figures that as long as each employee fills out a petty cash ticket, then there are proper controls in place. e. Due to the cost of maintaining the security cameras, Wings and More has decided that it will remove the cameras that monitor the cash register. f. Bryan Miller, manager of Hardware Emporium, prides himself on hiring exceptionally skilled employees who need no training to do their jobs. Print Done 1 Reference (1) Loss of revenue due to low-quality work. (2) Lost sales due to delay of product development. (3) Theft of cash. (4) Theft of cash and inefficiency. (5) Theft of cash and inefficiency, lack of support for financial statement transactions. (6) Unreliable financial statements and lost credibility. Print Done i Reference (A) Assign company accoutants to redesign the accounting system. (B) Assign one employee to manage the office in the owner's absence. (C) Every organization is different, so some training is usually required for all employees. (D) Have an audit to reduce the risk of false financial statements. (E) If the cost outweighs the benefit, have controls over access to the cash register and separation of duties in regards to counting the cash. (F) Keep copies of the customer invoices and look into using electronic copies. (G) One person should be responsible for the petty cash fund. (H) Require all employees to take vacations. (1) Several people should be responsible for the petty cash fund. Print Done Requirements 1. Identify the missing internal control characteristics in each situation. 2. Identify the possible problem caused by each control weakness. 3. Propose a solution to each internal control problem. Score: 0 of 4 pts 2 of 5 X PF7-31B (book/static) Each of the following situations has an internal control weakness. Click the icon to view the situations.) (Click the icon to view the possible problems.) (Click the icon to view the possible solutions.) Req. 1 Req. 2 Possible Req. 3 Missing Internal Control Characteristic Problem Solution a. Audits (6) (D) b