Exercise 6-3 Internal control strengths and weaknesses LO C1

Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control violated or followed for each procedure.

1. The recordkeeper is not allowed to write checks or initiate EFTs.
2. Time is saved by not updating records for use of supplies.
3. The company insures important assets during good and bad economic times.
4. The same employee requests, records, and makes payment for purchases of inventory.
5. The company does not use electronic time clocks because it fears it will hurt employee morale.

Weakness or Strength Internal Control Principle