$($Click the icon to view the situations.$)$

Requirement

Identify the internal control weakness in the situations presented. State how the person can hurt the company.

a$.$ Morris has access to the

$,$ and he also prepares the

With access to the

$,$ Morris

b$.$ Albom

$.$ She can

When the goods come in$,$

the

incoming shipment, so

v$.$

Situations

a$.$ Jim Morris works as a security guard at SAFETY parking in Budapest. Morris has a

master key to the cash box where customers pay for parking. Each night Morris

prepares the cash report that shows $($a$)$ the number of cars that parked on the lot

and $($b$)$ the day's cash receipts. Lucy Carrols, the SAFETY treasurer, checks Morris's

figures by multiplying the number of cars by the parking fee per car. Carrols then

deposits the cash in the bank.

b$.$ Cecilia Albom is the purchasing agent for Marshfield Golf Equipment. Albom prepares

purchase orders based on requests from division managers of the company. Albom

faxes the purchase order to suppliers, who then ship the goods to Marshfield. Albom

receives each incoming shipment and checks it for agreement with the purchase order

and the related invoice. She then routes the goods to the respective division managers

and sends the receiving report and the invoice to the accounting department for

payment.