Irish Imports is an importer of silver, brass, and furniture items from Ireland. Kathleen OShea is the
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O’Shea operates out of an office in Boston, Massachusetts. The office is managed by Maura Riley, who handles the mail, keeps the accounting records, makes bank deposits, and prepares the monthly bank reconciliation. Virtually all of Irish Imports’ cash receipts arrive by mail—from sales made to Target, Pier 1 Imports, and Macy’s.
Riley also prepares checks for payment based on invoices that come in from the suppliers who have been contacted by Fitzpatrick. To maintain control over cash payments, O’Shea examines the paperwork and signs all checks.
Requirement
Identify all the major internal control weaknesses in Irish Imports’ system and how the resulting action could hurt Irish Imports. Also state how to correct each weakness.
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Related Book For
Financial accounting
ISBN: 978-0132751124
9th edition
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
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