need part b

1.67/2.5 Question 6 of 10 View Policies Show Attempt History Current Attempt in Progress Your answer is partially correct. The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. (a) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. For each weakness, suggest a change in the procedure that will result in good internal control (b) 1 Company checks are stored in an unmarked envelope on a shelf behind the cash register. a (a) Weakness: Checks are not stored in a secure area Principle Physical Control (b) Recommended Changes 2 The store manager personally approves all payments before she signs and issues checks (a) Weakness: The approval and payment of bills done by the same individual Question 6 of 10 1.67/2.5 III 2 The store manager personally approves all payments before she signs and issues checks. la) Weakness The approval and payment of bills is done by the same individual Principle: Segregation of Duties (b) Recommended Change The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store authorized to purchase goods for resale by disbursing cash from the register. The purchase is documented by having the store e paper a description of the item that was purchased and the amount that was paid. The employee the signs the paper and putsi (a) Weakness: Unawthorized employees makine purchase Use of cash instead of checks, no prenumbered invoices Principle Establishment of Responsibility Documentation Procedures (b) Recommended Change 4. After payment, bills are "filed in a paid invoice folder (a) Weakness: Filing does not prevent a bill from being paid more than once Principle Documentation Procedures (b) Recommended Change: 5 The company accountant prepares the bank reconciliation and reports any discrepancies to the owner (a) Weakness: The bank reconciliation is not independently prepared Principle Independent Internal Verification b) Recommended Change