Situation a. Jake Bates has been an employee of the city of Elmhurst for many years. Because the city is small, Bates performs all of its accounting duties, in addition to opening the mail and preparing bank deposits and bank reconciliations.

Requirement 1. Missing Control Characteristic:

(possible answers) :

Assignment of responsibility

Competent Personnel

Inappropriate documents

Internal Audit

Proper Authorization

Separation of Duties

Requirement 2. Possible Problem: (situation A):

Possible Answers:

Lost Profits

Lost Revenues

Theft of Cash

Requirement 3. Potential Solution: (situation A)

Possible answers :

Hire a security guard

install a surveillance camera

separate cash handling duties from accounting duties. separate bank reconciliation from other duties.

Situation b. A purchasing agent for Mark Manufacturing is responsible for buying diamonds for use in the company's manufacturing process, approving the invoices for payment, and signing the checks. No supervisor reviews the purchasing agent's work.

Requirement 1. Missing Control Characteristic: (Possible Answers): (Situation B)

Assignment of responsibility

Competent Personnel

Inappropriate documents

Internal Audit

Proper Authorization

Separation of Duties

Requirement 2. Possible Problem: (Possible Answers): (Situation B)

Lost profits due to inefficiency

Lost revenues due to low-quality work

Theft of cash or diamonds

Requirement 3. (Situation B) Potential Solution: (Possible Answers) :

Fire the purchasing agent

separate purchasing, approval, and check signing duties

Situation c.

Bailey Price owns an architectural firm. Price 's staff consists of 16 professional architects, and Price manages the office. Often her work requires her to travel to meet with clients. During the past six months, Price has observed that when she returns from a business trip, the architecture jobs in the office have not progressed satisfactorily. She learns that when she is away, two of her senior architects take over office management and neglect their normal duties. One employee could manage the office.

Requirement 1. (Situation C) Missing Control Characteristic: (Possible Answers) :

Assignment of responsibility

Competent Personnel

Inappropriate documents

Internal Audit

Proper Authorization

Separation of Duties

Requirement 2. (Situation C) Possible Problem: (Possible Answers):

Lost revenues because of employees are neglecting regular duties

theft when the manager is out of town

Requirement 3. (Situation C) Potential Solution: (Possible Answers):

Have the owner stay in the office

Assign only a single employee to manage when owner is absent. hire a worker from a temporary agency.

Situations Jake Bates has been an employee of the city of Elmhurst for many years Because the city is small, Bates performs all of its accounting duties, in addition to opening the mail and preparing bank deposits and bank reconciliations a. b. A purchasing agent for Mark Manufacturing is responsible for buying diamonds for use in the company's manufacturing process, approving the invoices for payment, and signing the checks. No supervisor reviews the purchasing agent's work. Bailey Price owns an architectural firm. Price's staff consists of 16 professional architects, and Price manages the office. Often her work requires her to travel to meet with clients. During the past six months, Price has observed that when she returns from a business trip, the architecture jobs in the office have not progressed satisfactorily. She learns that when she is away, two of her senior architects take over office management and neglect their normal duties. One employee could manage the office c. PrintDone