Listed below are five procedures followed by Eikenberry Company. 1. Several individuals operate the cash register using the same register drawer. 2. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities. 3. Joe Cockrell writes checks and also records cash payment entries. 4. One individual orders inventory, while a different individual authorizes payments. 5. Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording. Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Procedure IC Good or Weak? Related Internal Control Principle 1. Weak or Good? Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, OR Segregation of Duties? 2. Weak or Good? Physical Controls, Segregation of Duties, Independent Internal Verification, Documentation Procedures, Human Resource Controls, OR Establishment of Responsibility? 3. Weak or Good? Establishment of Responsibility, Physical Controls, Segregation of Duties, Documentation Procedures, Independent Internal Verification, OR Human Resource Controls? 4. Weak or Good? Establishment of Responsibility, Segregation of Duties, Documentation Procedures, Human Resource ControlsI, ndependent Internal Verification, OR Physical Controls? 5. Weak or Good? Documentation Procedures, Establishment of Responsibility, Independent Internal Verification, Human Resource Controls, Segregation of Duties, OR Physical Controls?

Listed below are five procedures followed by Eikenberry Company. 1. Several individuals operate the cash register using the same register drawer. 2. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities. 3. Joe Cockrell writes checks and also records cash payment entries. 4. One individual orders inventory, while a different individual authorizes payments. 5. Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording. Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Procedure IC Good or Weak? Related Internal Control Principle 1. Weak or Good? Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, OR Segregation of Duties? 2. Weak or Good? Physical Controls, Segregation of Duties, Independent Internal Verification, Documentation Procedures, Human Resource Controls, OR Establishment of Responsibility? 3. Weak or Good? Establishment of Responsibility, Physical Controls, Segregation of Duties, Documentation Procedures, Independent Internal Verification, OR Human Resource Controls? 4. Weak or Good? Establishment of Responsibility, Segregation of Duties, Documentation Procedures, Human Resource ControlsI, ndependent Internal Verification, OR Physical Controls? 5. Weak or Good? Documentation Procedures, Establishment of Responsibility, Independent Internal Verification, Human Resource Controls, Segregation of Duties, OR Physical Controls?

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting Systems

Section: Chapter Questions

Problem 9E: Transactions related to revenue and cash receipts completed by Sycamore Inc. during the month of...

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Listed below are five procedures followed by Eikenberry Company.

1.		Several individuals operate the cash register using the same register drawer.
2.		A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.
3.		Joe Cockrell writes checks and also records cash payment entries.
4.		One individual orders inventory, while a different individual authorizes payments.
5.		Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.

Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated.

Procedure	IC Good or Weak?	Related Internal Control Principle
1.	Weak or Good?	Human Resource Controls, Establishment of Responsibility, Independent Internal Verification, Documentation Procedures, Physical Controls, OR Segregation of Duties?

2.	Weak or Good?	Physical Controls, Segregation of Duties, Independent Internal Verification, Documentation Procedures, Human Resource Controls, OR Establishment of Responsibility?

3.	Weak or Good?	Establishment of Responsibility, Physical Controls, Segregation of Duties, Documentation Procedures, Independent Internal Verification, OR Human Resource Controls?

4.	Weak or Good?	Establishment of Responsibility, Segregation of Duties, Documentation Procedures, Human Resource ControlsI, ndependent Internal Verification, OR Physical Controls?

5.	Weak or Good?	Documentation Procedures, Establishment of Responsibility, Independent Internal Verification, Human Resource Controls, Segregation of Duties, OR Physical Controls?

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