For the following two scenarios, describe what you think are the weaknesses in the internal controls and explain the implications of the weaknesses:

a. Trustees of a local school board are given credit cards by the board for charging amounts pertaining to their responsibilities. Statements come to the board office and are reviewed bya staff person who approves them for payment. Occasionally, a trustee will be asked to explain a charge not clearly related to the trustee’s work.
Trustees are also entitled to receive reimbursement for travel, including $0.50 per kilometre travelled in their own cars. To receive reimbursement a trustee must submit a form indicating the number of kilometres travelled. Trustees usually submit a travel form every six to eight months.

b. Day & Night is a local convenience store. It is owned and operated by the Verrato family. Most of the time a member of the family is in the store but for about 20 hours a week an employee is the only person working. The employee’s main responsibility is to ring up customer purchases on the cash register and collect cash (credit cards aren’t accepted). Other duties include stocking shelves and keeping the store clean, as well as locking up the store at the end of the day. A family member takes cash from the register to the bank, usually the next day.