Shown below are four possible errors that might occur in a business.

i. The cashier conceals the embezzlement of cash by reducing the balance of the cash account in the general ledger.

ii. A janitorial company buys a large amount of cleaning supplies and has consistently been over budget in its expenditures for these items. In the past, supplies were left open

in the unlocked warehouse to be taken each evening as needed by the on-site supervisor. iii. There are consistently high errors in one particular stores recording of inventory received. It is discovered that the employees did not know the correct procedures.

iv. A company was billed for items that it did not receive. The accounting department paid the invoices.

Required (10 points):

a. For each error, identify any control procedures that would prevent this type of error from occurring and discuss how the procedures would have prevented the error.

b. Discuss the importance of the control environment. Include in your discussion a description of some of the components indicative of a strong control environment.

c. Discuss how management override can lead to the ineffectiveness of any control procedures that are put in place by an organization.