Percy Printers uses the following control procedures:
1. Checks are not pre-numbered because the purchasing manager must approve payments before checks are signed.
2. The company's accountant records the receipt of cash and checks and makes deposits at the bank.
3. The employee who works the register reconciles cash to receipts at the end of the day.
4. Employees know that the internal auditor will perform a bank reconciliation at the end of each month.
5. Petty cash is kept in a back room but is not monitored during the day.
6. A cashier lets another employee work his assigned register while he helps a customer.
Identify the problem with each internal control procedure.

  • CreatedJuly 16, 2015
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