Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. a. Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company. b. At Tico Company, Julia and Trevor alternate lunch hours. Julia is the petty cash custodian, but if someone needs petty cash when she is at lunch, Trevor fills in as custodian. Perform regular and independent reviews. c. Chi Han receives all incoming customer cash receipts for her employer and posts the customer Separate recordkeeping from custody of assets. payments to their respective accounts. Apply technological controls. d. Marker Theater has a computerized order-taking system for its tickets. The system is backed up Divide responsibility for related transactions. once a year. e. The owner of Super Pharmacy uses a check software/printer to prepare checks, making it difficult for anyone to alter the amount of a check. The check software/printer, which is not password protected, is on the owner's desk in an office that contains company checks and is normally unlocked. Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. a. Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company. b. At Tico Company, Julia and Trevor alternate lunch hours. Julia is the petty cash custodian, but if someone needs petty cash when she is at lunch, Trevor fills in as custodian. Apply technological controls. Divide responsibility for related transactions. c. Chi Han receives all incoming customer cash receipts for her employer and posts the customer Maintain adequate records. payments to their respective accounts. Establish responsibilities. d. Marker Theater has a computerized order-taking system for its tickets. The system is backed up Insure assets and bond key employees. once a year. e. The owner of Super Pharmacy uses a check software/printer to prepare checks, making it difficult for anyone to alter the amount of a check. The check software/printer, which is not password protected, is on the owner's desk in an office that contains company checks and is normally unlocked. Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. a. Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company. b. At Tico Company, Julia and Trevor alternate lunch hours. Julia is the petty cash custodian, but if someone needs petty cash when she is at lunch, Trevor fills in as custodian. Perform regular and independent reviews. c. Chi Han receives all incoming customer cash receipts for her employer and posts the customer Separate recordkeeping from custody of assets. payments to their respective accounts. Apply technological controls. d. Marker Theater has a computerized order-taking system for its tickets. The system is backed up Divide responsibility for related transactions. once a year. e. The owner of Super Pharmacy uses a check software/printer to prepare checks, making it difficult for anyone to alter the amount of a check. The check software/printer, which is not password protected, is on the owner's desk in an office that contains company checks and is normally unlocked. Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. a. Tywin company keeps very poor records of its equipment. Instead, the company asserts its employees are honest and would never steal from the company. b. At Tico Company, Julia and Trevor alternate lunch hours. Julia is the petty cash custodian, but if someone needs petty cash when she is at lunch, Trevor fills in as custodian. Apply technological controls. Divide responsibility for related transactions. c. Chi Han receives all incoming customer cash receipts for her employer and posts the customer Maintain adequate records. payments to their respective accounts. Establish responsibilities. d. Marker Theater has a computerized order-taking system for its tickets. The system is backed up Insure assets and bond key employees. once a year. e. The owner of Super Pharmacy uses a check software/printer to prepare checks, making it difficult for anyone to alter the amount of a check. The check software/printer, which is not password protected, is on the owner's desk in an office that contains company checks and is normally unlocked