Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
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) Question 1 response: Question 2 response

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Accounting A User Perspective

Authors: Suadagaran, Shahrokh M, Smith Lawrence Murphy

5th Edition

1531018661, 9781531018665

More Books

Students also viewed these Accounting questions