Question No. 8

For each of these cases, identify the principle(s) of internal control. Describe whether each case is an example of good internal control or of weak internal control along with the reason. 1. XYZ ltd uses a check protector, which is on the employers desk in an office that contains company checks and is normally unlocked. 2. In PQR ltd., one employee places purchase orders and pays vendors. The second employee receives the merchandise. 3. Samuel Fox is the companys computer specialist. He has put a password in place that allows the boss access to the important financial records. 4. In GHI ltd, Mr. TEX receives cash from all customers. 5. In ABC ltd., the employee responsible for cash disbursements reconciles the bank account monthly.