Current Attempt in Progress The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. 1. Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register. 2 The store manager personally approves all payments before she signs and issues checks. 3. 4. 5. The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. The purchase is documented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register. After payment, bills are "filed" in a paid invoice folder. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. (b) For each weakness, suggest a change in the procedure that will result in good internal control. Procedure 1. 2. 3. 5. Weakness Checks are not stored in a secure area. The approval and payment of bills is done by the same individual. Unauthorized employees making purchases. Use of cash instead of checks; no pre-numbered invoices. Filing does not prevent a bill from being paid more than once. The bank reconciliation is not independently prepared.