Question

Each store manager is responsible for interviewing applicants for cashier jobs. they are hired if they seem honest and trustworthy. select a weakness in internal control select a control principle that is violated 2. all over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer. select a weakness in internal control select a control principle that is violated 3. to minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stock room until it is deposited in the bank. select a weakness in internal control select a control principle that is violated 4. at the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. select a weakness in internal control select a control principle that is violated 5. the company accountant makes the bank deposit and then records the day's receipts

Answer 1

1)Weakness:

Cashiers are not bonded and background checks are not conducted

Principle Violated:

Human resource Controls

2)Weakness:

Inability to establish responsibility for cash on a specific clerk

Principle Violated :

Establishment of responsibility

3)Weakness:

Cash is not adequately protected from theft

Principle Violated :

Physical Controls

4)Weakness:

Cash is not independently counted

Principle Violated :

Independent internal verification

5)Weakness:

The accountant should not handle cash

Principle Violated :

Segregation of duties