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Review the following situations. (Click the icon to view the situations.) Requirement 1. Identify the internal control weakness in the situations presented. State how the

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Review the following situations. (Click the icon to view the situations.) Requirement 1. Identify the internal control weakness in the situations presented. State how the person can hurt the company a. Chen She can When the goods come in, the incoming shipment, 50 olwl i Situations X a. Emily Chen is the purchasing agent for Wilson Industries. Chen prepares purchase orders based on requests from division managers of the company. She faxes the purchase order to suppliers, who then ship the goods to Wilson. Chen receives each incoming shipment and checks it for agreement with the purchase order and the related invoice. She then routes the goods to the respective division managers and sends the receiving report and the invoice to the accounting department for payment. b. Chris Frabotta works as a security guard at PARKFAST parking in St. Louis, Frabotta has a master key to the cash box where customers pay for parking. Each night Frabotta prepares the cash report that shows (a) the number of cars that parked on the lot and (b) the day's cash receipts. Holly Van, the PARKFAST bookkeeper, checks Frabotta's figures by multiplying the number of cars by the parking fee per car. Van then deposits the cash in the bank. Print Done swer(s) and then click Check Answer. Requirement 1. Identify the internal control weakness in the situations presented. State how the person can hurt the company. the incoming shipment, a. Chen prepares the purchase order and also receives the goods She can add some items to the purchase order and have them shipped to a location she controls. When the goods come in, she checks so there is no outside party to learn of her dishonesty b. Frabotta has access to the and she also prepares the With access to the Frabotta cars parked in the lot cash collected lick the icon to view the situations.) He Requirement 1. Identify the internal control weakness in the situations presented. State how the person can hurt the company, P ht a. Chen prepares the purchase order and also receives the goods She can add some items to the purchase order and have them shipped to a location she controls. When the goods come in, she checks so there is no outside party to learn of her dishonesty the incoming shipment, b. Frabotta has access to the and she also prepares the With access to the mo Frabotta bank deposit cash report - Ras income statement Xam mber ent She can a. Chen prepares the purchase order and also receives the goods add some items to the purchase order and have them shipped to a location she controls. When the goods come in, she checks so there is no outside party to learn of her dishonesty b. Frabotta has access to the and she also prepares the With access to the the incoming shipment, Frabotta cash collected cash collected and reported cash report income statement 1. Identify the internal control weakness in the situations presented. State how the person can hurt the company. ment a. Chen prepares the purchase order and also receives the goods She can add some items to the purchase order and have them shipped to a location she controls When the goods come in, she checks so there is no outside party to learn of her dishonesty b. Frabotta has access to the and she also prepares the With access to the the incoming shipment 5 ts Frabotta can steal cash and falsify her cash report to conceal her theft can steal cash but cannot falsify the cash report to conceal her theft cannot steal cash, but can falsify the cash report cannot steal cash, but can steal the cars in the lot

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