mework A NenUrl=https%253A%252F%252Fzanestate. Saved Help Save & 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 Sutton Company has two employees handling acquisitions of inventory. One employee places purchase orders and pays vendors. The second employee receives the merchandise Ben Shales prides himself on hiring quality workers who require Mittle supervision. As office manager b. Ben gives his erreployees full discretion over their tasks and for years has seen no reason to perform independent reviews of their work Carla Farah's manager has told her to reduce costs. Carla decides to raise the deductible on the plant's property insurance from $5 thousand to $10 thousand This cuts the property insurance premium in half. In a related move, she decides that bonding the plant's employees is a waste of money because the company has not experienced any losses due to employee theft Carla saves the entire amount of the bonding insurance premium by dropping the bonding insurance d Nori Nozum posts all patient charges and payments at the Hopeville Medical Clinic Each night Nori backs up the computerized accounting system but does not password lock her computer To ensure the company retreat would not be cut the manager of Lavina Company decided to save money by canceling the external audit of internal controls Prev 1 of 4 Next > arch O DL a 16 1 wolving internal control issues. le(s) of internal control that is violated. 4 handling acquisitions of inventory. One employee places The second employee receives the merchandise quality workers who require little supervision As office manager on over their tasks and for years has seen no reason to perform to reduce costs Carla decides to raise the deductible on the housand to $10 thousand. This cuts the property Insurance she decides that bonding the plants employees is a waste of not experienced any losses due to employee theft Carla saves the ance premium by dropping the bonding insurance ges and payments at the Hopeville Medical Clinic Each night Nori nting system but does not password lock her computer Establish responsibilities. Insure assets and bond key employees. Maintain adequate records. Perform regular and independent reviews ould not be cut the manager of Lavina Company decided to save audit of internal controls violated. he employee places erchandise. rvision. As office manager, seen no reason to perform e the deductible on the e property insurance mployees is a waste of bloyee theft. Carla saves the insurance Hical Clinic. Each night Nori Ek her computer Maintain adequate records. Perform regular and independent reviews. Divide responsibility for related transactions. Separate recordkeeping from custody of assets. Apply technological controls. Company decided to save