Question

A company employs three accounts payable clerks and one treasurer. Their responsibilities are as follows:
Employee Responsibility
Clerk 1 ...... Reviews vendor invoices for proper signature approval
Clerk 2........... Enters vendor invoices into the accounting system and verifies payment terms
Clerk 3.... Posts entered vendor invoices to the accounts payable ledger for payment and mails checks
Treasurer..... Reviews the vendor invoices and signs each check

Which of the following would indicate a weakness in the company’s internal control?
a. Clerk 1 opens all of the incoming mail.
b. Clerk 2 reconciles the accounts payable ledger with the general ledger monthly.
c. Clerk 3 mails the checks and remittances after they have been signed.
d. The treasurer uses a stamp for signing checks.




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  • CreatedOctober 27, 2014
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