Question

Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control violated or followed for each procedure. The owner does not use ID scanners to limit access to expensive merchandise. Instead, the owner argues they hire honest employees. An employee cannot approve their own request for purchases of inventory. Several salesclerks share the same cash drawer. Employees that handle easily transferable assets such as cash are bonded. The company devotes resources towards keeping accurate accounting records for machinery.

Answer 1

Answer:

Explanation:

The owner does not use ID scanners to limit access to expensive merchandise. Instead, the owner argues they hire honest employees.

weakness     does not use ID scanners (surely they must hire honest employees and also use appropriate tools)

An employee cannot approve their own request for purchases of inventory.

strength     cannot approve their own request  (the hierarchically above should approve)

Several salesclerks share the same cash drawer.

weakness     share the same cash drawer  (this must be prohibited)

Employees that handle easily transferable assets such as cash are bonded.

weakness   transferable assets such as cash are bonded   (the employee should not be responsible for)

The company devotes resources towards keeping accurate accounting records for machinery.  

strength     resources keeping accurate accounting records for machinery.

(Certainly company should  accurate accounting records   ever