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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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Answer:

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Explanation:

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In this scenario the people that entered the NASCAR venue were 8,000 people per hour.

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Answer:

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Since only issue price is given, so we assume it is in percentage form because the number of shares is not given in the question. So, we assume this.  

In mathematically,  

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