Final answer:
The principle of segregation of duties is violated in Case 1, and the principle of documentation and recordkeeping is violated in Case 2.
Step-by-step explanation:
In Case 1, the violation of the principle of segregation of duties is evident as a single individual is responsible for both authorizing and recording financial transactions. This lack of separation increases the risk of errors or fraudulent activities going unnoticed. Segregation of duties is crucial to ensure a system of checks and balances within an organization, preventing any single individual from having too much control over a financial process.
In Case 2, the violation lies in the principle of documentation and recordkeeping. The absence of proper documentation for financial transactions hinders transparency and accountability. Clear and accurate records are essential for auditing purposes and to track the flow of financial information. Failure to adhere to this principle may result in difficulties during audits and can lead to legal and financial consequences for the organization.
Both cases highlight the importance of maintaining internal controls to safeguard against financial mismanagement and fraud. Implementing these principles helps organizations maintain the integrity of their financial processes and ensure compliance with regulatory standards.