Explain how the principle of separation of duties is violated in each of the following situations. Also suggest one or more procedures to reduce the risk and exposure highlighted in each example.
a. A payroll clerk recorded a 40-hour workweek for an employee who had quit the previous week. He then prepared a paycheck for this employee, forged her signature, and cashed the check.
b. While opening the mail, a cashier set aside, andsubsequently cashed, two checks payable to the company on account.
c. A cashier prepared a fictitious invoice from a company using his brother-inlaw's name. He sent an electronic payment for the invoice to his brother-in-law.
d. An employee of the finishing department walked off with several parts from the storeroom and recorded the items as having been issued to the assembly department.
e. A cashier cashed a check from a customer in payment of an account receivable, pocketed the cash, and concealed the theft by properly posting the receipt to the customer's account in the accounts receivable ledger.