1. The company does not use electronic time clocks because it fears it will hurt employee morale. 2. An employee cannot approve their own request for purchases of inventory. B. Several salesclerks share the same cash drawer. 4. Employees that handle easily transferable assets such as cash are bonded. 5. The company does not allow employees with access to cash to modify accounting records.
1. The company does not use electronic time clocks because it fears it will hurt employee morale. 2. An employee cannot approve their own request for purchases of inventory. B. Several salesclerks share the same cash drawer. 4. Employees that handle easily transferable assets such as cash are bonded. 5. The company does not allow employees with access to cash to modify accounting records.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Determine whether each procedure described below is an internal control strength or weakness; then identify the internal contri
principle violated or followed for each procedure.
1. The company does not use electronic time clocks because it fears it will hurt employee morale.
2. An employee cannot approve their own request for purchases of inventory.
3. Several salesclerks share the same cash drawer.
4. Employees that handle easily transferable assets such as cash are bonded.
5. The company does not allow employees with access to cash to modify accounting records.
Answer is complete but not entirely correct.
Weakness or Strength
1.
Weakness
2
Strength
3.
Weakness
4.
Strength
5.
Strength
Internal Control Principle
Separate recordkeeping from custody of assets
Separate recordkeeping from custody of assets
Separate recordkeeping from custody of assets
Insure assets and bond key employees
Apply technological controls
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