Each situation below describes an internal control weakness in the cash payments process. Identify

which of the five internal control principles is violated, explain the weakness, and then suggest a change

that would improve internal control.

1. The warehouse clerk is responsible for ordering inventory when levels become low and advising

the accounting department to issue a payment to the supplier when ordered goods are

received.

2. For each purchase, the accountant compares the purchase order (prepared by the purchasing

manager) to the receiving report (prepared by warehouse employees) and then attaches these

documents to the corresponding supplier invoice and files them by supplier name. The

accountant then prepares a check, which the owner merrily signs and sends to the mail clerk for

mailing.

3. The check-signing machine is stored with a supply of blank checks in the lunch room closet.

4. Purchase orders can be approved by the purchasing manager, accountant, or warehouse

supervisor, depending on who is least busy.