PROBLEM:

1. Olivia hired a payroll clerk, who is a very hard worker and did not take vacation in 202 Employees do not typically report payroll errors, so Olivia does not need to monitor the payroll clerk closely.

Provide the following an answer from an Accountant point of view for this problem using the next three categories:

Example of internal control weakness for a toy manufacturer:

1- Description of weakness: The back door to the companys warehouse where inventory is stored is kept open and unlocked throughout the day, every day.

2- Explanation of what can go wrong as a result of the weakness: Outsiders/unauthorized people can get into the warehouse and steal inventory

3- Recommended change: Ensure the back door is kept locked at all times and provide entry only to authorized people such as employees and delivery personnel.