Identify the strength or weakness in internal control


Response to the following problem:

The following situations suggest a strength or a weakness in internal control. Identify each as strength or weakness, and give the reason for your answer.

a. Top managers delegate all internal control measures to the accounting department.

b. The accounting department orders merchandise and approves invoices for payment.

c. The operator of a computer has no other accounting or cash-handling duties.

d. Cash received over the counter is controlled by the sales clerk, who rings up the sale and places the cash in the register. The sales clerk matches the total recorded on the control tape stored in the register to each day's cash sales.

e. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

 

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Auditing: Identify the strength or weakness in internal control
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