Each Friday, approved supplier invoices that are due within the next week are routed to the...

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Each Friday, approved supplier invoices that are due within the next week are routed to the treasurer's department for payment. The cashier and treasurer are the only employees authorized to disburse funds, either by EFT or by printing a check. Checks are printed on dedicated printer located in the treasurer's department, using special stock paper that is stored in a locked cabinet accessible only to the treasurer and cashier. The paper checks are sent to accounts payable to be mailed to suppliers. Monthly, the treasurer reconciles the bank statements and investigates any discrepancies with recorded cash balances. Required: Identify weaknesses in Company's existing expenditure cycle procedures, explain the resulting problems, and suggest as solution. Each Friday, approved supplier invoices that are due within the next week are routed to the treasurer's department for payment. The cashier and treasurer are the only employees authorized to disburse funds, either by EFT or by printing a check. Checks are printed on dedicated printer located in the treasurer's department, using special stock paper that is stored in a locked cabinet accessible only to the treasurer and cashier. The paper checks are sent to accounts payable to be mailed to suppliers. Monthly, the treasurer reconciles the bank statements and investigates any discrepancies with recorded cash balances. Required: Identify weaknesses in Company's existing expenditure cycle procedures, explain the resulting problems, and suggest as solution.

Answer rating: 100% (QA)

Weakness 1 There is no segregation of duties between the cashier and treasurer which increases the r... View the full answer