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Digiron [165]
3 years ago
11

The following situations suggest a strength or a weakness in internal control. Identify each as a strength or weakness​, and giv

e the reason for your answer. a. All employees must take at least five consecutive days off each year. b. The accounting department orders merchandise and approves invoices for payment. c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department. d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.
Business
1 answer:
Mkey [24]3 years ago
7 0

Answer: Options A and C are strengths while options B and D are weaknesses. See explanation below.

Explanation:

a. All employees must take at least five consecutive days off each year.

This is a strength in internal control. This would help to maintain stability in operational process and ensure leave days are effectively utilized. It also prevents staff from taking the leave days in piecemeal and sporadic manner thereby disrupting the operational process and causing team instability. It is also used to ensure leave days are promptly utilised and well accounted for.

b. The accounting department orders merchandise and approves invoices for payment.

This is a weakness in internal control. There should be a check and balance in this regard. In some organizations, proper scrutiny of the vendor and invoice is done by the Procurement Unit and the Expense Control Unit respectively. Even within the accounting department, there is approval hierarchy. Also, the unit within accounting department that is making the order should not be the one to approve the transaction.

c. Cash received over the counter is controlled by the sales​ clerk, who rings up the sale and places the cash in the register. The daily sales are recorded in the accounting records by the accounting department.

This is a strength in internal control as it ensures checks and balances. Fraud and error can be detected through this means. The accounting department should verify the transactions to the relevant supporting document before recording the transaction in the system.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

This is a weakness in internal control in the sense that checks signed by the officer is binding in the court of law. The officer cannot claim ignorance if anything goes wrong. There is therefore a need for proper scrutiny and relevant questions asked before checks are signed.

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Alex
GaryK [48]

Answer:

<em>hello your question lacks some vital information hence I will make valid assumptions to aid the solution </em>

answer : $583333.33

Explanation:

22 yrs old

pre tax income = $35,000 per year

savings = $200/month

<u>Determine how much you will need to retire at 67</u>

lets assume : Interest rate = 6% per annum

annual withdrawable amount per year after retirement = $35,000

∴ amount to be saved up by 67 years = 35,000 / 6% = $583333.33

<u>hence amount needed to retire at age 67 </u>

target amount = $583,333.33

interest rate = 6%

number of years = 67 - 22 = 45

savings per year needed = 583,333.33 / 45 = $12962.96

<em>Note : saving $200 per month would not give the required amount needed to retire at age 67 </em>

The required monthly savings =  12962.96 / 12 = $1080.25

5 0
3 years ago
Politics, law, culture, and economy are all examples of ________ factors that can affect the ways in which companies produce and
WARRIOR [948]
Politics, law, culture, and economy are all examples of  social factors <span>that can affect the ways in which companies produce and sell their products in foreign markets.
Social factors is everything that could affect your life style. When your lifestyle change, your consumption pattern will also change and this will affect the products that will be sold in the market.</span>
3 0
3 years ago
If the price of one of the products associated with indifference curves increases, all else the same, what is the result?
Rudik [331]

Answer:

The individual is able to get to a lower level of utility

Explanation:

5 0
3 years ago
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31. In the United States, men most commonly have a longer life expectancy than women.
Minchanka [31]
I believe it’s False, it might be wrong though
5 0
3 years ago
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The use of debt in the firm's capital structure will increase ROE if the firm:_____.
DIA [1.3K]

Answer: c. earns a higher return than the rate paid on debt.

Explanation:

If the debt that the company incurs leads to the company making more money than they are paying as interest for the debt, then more money will be available as net income which would increase the Return on Equity.

ROE is calculated by dividing the Net Income by Shareholder equity. Interest is an expense. If this expense is lower then the increase in net income as a result of the debt then it follows that net income would increase and so would ROE.

8 0
3 years ago
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