For each of the following situations decide whether proper controls relating to the segregation of duties have been implemented. If not, recommend any improvements that could be made.
a. A catering company prices each job separately based on the size, kind of food, and other variables. Currently, the event planner for each account prices the job, places all the necessary orders, and collects payment at the time of the event.
b. A department store has implemented an electronic system to process and authorize credit card transactions.
c. A mail order company accepts both checks and credit cards as payment on sales. The checks received through the mail are collected on a weekly basis, restrictively endorsed, and a remittance list is created.
d. The same mail order company from part c. does not release any inventory for shipping until employees have matched the inventory items to be shipped with an approved sales invoice.
e. The accounting department at Carly Corporation reconciles their books to their bank statements every six months.

  • CreatedJanuary 21, 2015
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