Listed below are five procedures followed by Rhone Bakery. 1. Employees are required to take vacations. 2.
Question:
Listed below are five procedures followed by Rhone Bakery.
1. Employees are required to take vacations.
2. Any member of the sales department can approve credit sales.
3. Paul Jaggard ships goods to customers, bills customers, and receives payment from customers.
4. Total cash receipts are compared to bank deposits daily by someone who has no other cash responsibilities.
5. Time clocks are used for recording time worked by employees.
Instructions
Indicate whether each procedure is an example of good internal control or of weak internal control. If it is an example of good internal control, indicate which internal control principle is being followed. If it is an example of weak internal control, indicate which internal control principle is violated. Use the table below.
Step by Step Answer:
Accounting Principles
ISBN: 978-1119419617
IFRS global edition
Authors: Paul D Kimmel, Donald E Kieso Jerry J Weygandt