Analyzing internal control For each of these five separate cases, identify the basic control principle(s) that is violated. Recommend what the business should do for better control.
1. Lavina Company is a small business that has separated the duties of cash receipts and cash disbursements.
The employee responsible for cash disbursements reconciles the bank account monthly.
2. Latisha Tally personally opens all the mail for Professional Systems and performs monthly bank reconcihations.
3. Jim Sutton prides himself on hiring quality workers who require little supervision. As office manager, Jim allows his bookkeeper to sign checks for the business.
4. Victor Vu deposits cash receipts for Quality Lawncare once each week.
5. Gates’ Dog Salon uses a petty cash system. Jill is the petty cash cashier, but she allows other employees to access the petty cash drawer if she is away from her desk.