Identify the missing internal control in the following situations. Select from these activities:
■ Proper authorization
■ Separation of duties
■ Adequate documents and records
a. While reviewing the records of Discount Pharmacy, you find that the same employee orders merchandise and approves invoices for payment.
b. Business is slow at Fun City Amusement Park on Tuesday, Wednesday, and Thursday nights. To reduce expenses, the owner decides not to use a ticket taker on those nights. The ticket seller is told to keep the tickets as a record of the number sold.
c. When business is brisk, Stop-n-Go does not give customers a written receipt unless they ask for it.
d. Jim has worked for Paul’s hardware for over 10 years. Due to his length of employment, he has been allowed to grant sales returns at his discretion.
e. At a grocery store, the manager decides to reduce paperwork. She eliminates the requirement that the receiving department prepare a receiving report.

  • CreatedApril 29, 2014
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