Exercise $6-1$ Identifying internal control failures $\backslash (\backslash$underbrace$\{\}\_\{\backslash$text $\{$C$1\}\}\backslash )$

Identify the internal control principle that was violated in each of the following separate situations.

a$.$ The recordkeeper left town after the owner discovered a large sum of money had disappeared. An audit found that the recordkeeper had written and signed several checks made payable to his fianc$$e and recorded the checks as salaries expense.

b$.$ An employee was put in charge of handling cash. That employee later stole cash from the business. The company incurred an uninsured loss of $\backslash (\backslash$$ $184,000\backslash ).$

c$.$ There is $\backslash (\backslash$$ $500\backslash )$ in cash missing from a cash register drawer. Three salesclerks shared the cash register drawer, so the owner cannot determine who is at fault.