ACCT 504 help A Guide to career/uophelp.com ACCT 504 help A Guide to career/uophelp.com | Page 30

TCOs A and E) Your friend, Ellen, has hired you to evaluate the
following internal control procedures.
Explain to your friend whether each of the numbered items below is an
internal control strength or weakness. You must also state which internal
control procedure relates to each of the internal controls.
For the weaknesses, you also need to state a recommendation for
improvement.
(1) The cashier counts the total receipts and reconciles the receipts with
the cash register total.
(2) Electronic documents are password-protected.
(3) The accountant is completely independent of the sales department.
(4) Invoices are not numbered.
(5) Large purchase orders must be approved by a manager. (Points : 30)
Set 2
1: Invoices are pre-numbered.
2: The controller approves of the purchases and makes the payment
since he or she is familiar with the purchases.
3: The office manager is in charge of the petty cash fund.
4: Blank checks are stored in the safe.
5: At the end of the day, the total receipts are counted by the cashier on
duty and reconciled to the cash register total. (Points : 30)
Set 3
Invoices are pre-numbered.
The controller approves of the purchases and makes the payment since
he
or she is familiar with the purchases.
The office manager is in charge of the petty cash fund.
Blank checks are stored in the safe.