The following are partial descriptions of internal controls for com- puties engaged in the manufacturing business: 1. Every day, hundreds of employees clock in using their employee identification cards at Generous Motors Corporation. The data on these time records is used in the prepa- ration of the labor cost distribution records, the payroll journal, and the electronic payments and payroll checks. The treasurer, Angela Lee, compares the payroll journal with the payroll records, signs the checks, and returns the payroll notifications and checks to Charles Strode, the supervisor of the computer department. The payroll checks and payment notices are distributed to the employees by Strode. 2 When Jill Clark orders materials, an electronic copy of the purchase order is sent to the receiving department. During the delivery of materials, David Smith, the receiv- ng clerk, records the receipt of shipment on this purchase order and then sends the purchase order to the accounting department, where it is used to record materials purchased and accounts payable. The materials are transported to the storage area by lorklifts. The additional purchased quantities are recorded on storage records. 3. The smallest branch of Connor Cosmetics employs Mary Cooper, the branch manager, and her sales assistant, Janet Hendrix. The branch uses a bank account to pay expenses. The account is kept in the name of "Connor Cosmetics-Special Account." To pay ex- penses, checks must be signed by Cooper or by the treasurer, John Winters. Cooper receives the cancelled checks and bank statements. She reconciles the branch account herself and files cancelled checks and bank statements in her records. She also periodi- cally prepares reports of cash disbursements and sends them to the home office. a. List the deficiencies in internal control for each of these situations. To identify the deficiencies, use the methodology that was discussed in this chapter. b. For each deficiency, state the type(s) of misstatement(s) that is (are) likely to result. Be as specific as possible. c. How would you improve internal controls for each of the three companies? Required