saved Following are five separate cases involving internal control issues. Required: 1. For each case, identify the principle(s) of internal control that is violated. 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 little supervision. As office manager. b. Ben gives his employees tull 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 $5,000 to $10,000. 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 Nor Nozumi posts all patient charges and payments at the Hopeville Medical Clinic Each night Non Backs up the computerized accounting system but does not password lock her computer Establish responsibilities. Insure assets and bond key employees. Maintain adequate records. Perform regular and independent reviews. 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 Separate recordkeeping from custody of assets. 1 of 8 Next > laces ce manager, n to perform Maintain adequate records. Perform regular and independent reviews. e on the nium in half. In cause the amount of the Divide responsibility for related transactions. Separate recordkeeping from custody of assets. h night Nori 7. Apply technological controls. ed to save Separate recordkeeping from custody of assets