Question: Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control principle violated or followed for each procedure.
Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control principle violated or followed for each procedure.
The owner does not use ID scanners to limit access to expensive merchandise. Instead, the owner argues they hire honest employees.
An employee cannot approve their own request for purchases of inventory.
The company does not allow employees with access to cash to modify accounting records.
Time is saved by not updating records for use of supplies.
The company saves money by having employees involved in operations perform the only review of internal controls.
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