Question - For each of the independent cases below, identify the principle of internal control that is violated, and recommend what should be done to remedy the violation. Answer should be at least one paragraph.
A. In order to save money, Regal Company has decided to drop its property insurance on assets; and stop bonding the cashiers who handle about $10,000 in cash each day.
B. Halton Company records each sale on a preprinted invoice. Since sometimes invoices are damaged in the process of being prepared, the invoices are not pre-numbered, but the sales clerk writes the next number onto each invoice.