The following control procedures are used in Penny's Boutique Shoppe for cash disbursements. For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. Procedure Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. The store manager personally approves all payments before she signs and issues checks. The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by issuing cash from the register. The purchase is documented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register. Weakness Checks are not stored in a secure area Unauthorized employees making purchases The approval and payment of bills is done by the same individual Filing does not prevent a bill from being paid more than once The bank reconciliation is not independently prepared Use of cash instead of checks; no prenumbered invoice Principle Violated After payment, bills are "filed" in a paid invoice folder. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. The following control procedures are used in penny's boutique shopper for cash disbursements. For each procedure, explain the weakness in internal control principle that is violated. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. After payment, bills are "filed" in a invoice folder. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. The store manager personally used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by issuing cash from the register. The purchase is documented by having the store employee write on a please of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register. Principle violated Human resource controls independent internal verification Establishment of responsibility Physical controls Segregation of duties Documentation procedures