A company employs three accounts payable clerks and one treasurer. Their responsibilities are as follows: Employee Responsibility

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.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...