Q.27

Question 27 (11 points) Sarah Miller is an accounts receivable clerk. Her primary role is sending customer invoices and collecting receipts from customers. Sarah puts the receipts in her unlocked desk and makes deposits every second day. Aaron, the accounting manager, is supposed to post transactions to customer accounts and reconcile the accounts. When he gets busy, Sarah often does these tasks. She logs in to the computer with Aaron's account so that she has proper access. Aaron feels this is fine since he knows that Sarah has the knowledge to do these tasks correctly. Even when Sarah helps Aaron with his tasks, Aaron always makes sure to complete an independent cash count and compares it to total receipts. When members of the accounting staff are on vacation, other staff members cover their duties. The company policy is that all employees receive 2 weeks of paid vacation, and they must take all 2 weeks every year. Required: 1. In your own words, identify three control weaknesses in the above situation, explain the problems that could occur as a result of each of these weaknesses, and provide a recommendation to correct each control weakness.. (9 marks) 2. In your own words, identify one control strength in the above situation and explain what makes it an internal control strength. (2 marks) Paragraph B I VA E OL no Q + . Question 1 response: Paragraph UA Od + Question 1 response: Question 2 response