q2 c6

Identify the internal control principle that was violated in each of the following separate situations. Situations Principle Violated An employee was put in charge of handling cash. That employee later stole cash from the business. The company incurred an uninsured loss of $184,000. There is $500 in cash missing from a cash register drawer. Three salesclerks shared the cash register drawer, so the owner cannot determine who is at fault. An employee stole thousands of dollars worth of equipment over many years. It took years for the company to discover the fraud because accounting records for equipment were rarely updated Insure assets and bond key employees Establish responsibilities Maintain adequate records