Problem -
Indicate the internal control principle that was violated for each finding below. The internal control principles include establishment of responsibility, segregation of duties, documentation procedures, physical controls, independent internal verification, and human resource controls.
- Poor accounting system of recording keeping
- Late deposits of cash receipts
- Excessive aged and high accounts receivable balances
- Disregard for early payments for discounts on invoices
- Late payments of accounts payable (sometimes due to lack of cash)
- Lax appropriate segregation of duties
- Relaxed rules on accounting principles' application
- Unqualified supervisor and management
- Inadequate control on supervisor and management overrides
- Lax oversight by external board of directors