Management Risk

Il. Identify the internal control weakness or factors that increase the risk of the Misstatement (18 points) Frauds or Errors Internal Control Weakness or Factors that Increase the Risk of the Misstatement 1. A cashier fails to ring up and record cash sales and embezzles the cash 2. A cashier embezzles cash payments by customers on receivables without recording the receipts in the customers' accounts 3. A bookkeeper accidentally fails to record payment on a receivable 4. Recording cash receipts based on bad information about date of receipt 5. A purchase is recorded when an invoice is received from a vendor and recorded again when a duplicate invoice is sent by the vendor 6. Failure to record changes in market value of investments 7. An employee with access to securities converts them for personal use 8. Recording sales in the wrong period based on incorrect shipping information 9. Purchases of equipment erroneously reported in maintenance and repairs expense account 10. Purchases of equipment erroneusly reported in maintenance and repairs expense account 11. Intentional recording of purchases in the subsequent period