The following are a list of internal control activities: Assignment of responsibility Physical controls Review and reconciliation
Question:
The following are a list of internal control activities:
Assignment of responsibility
Physical controls
Review and reconciliation
Segregation of duties
Documentation
OK Truck Parts Ltd. employs sales staff who visit current and prospective customers. The sales staff keep product samples in their vehicles so they can demonstrate the product to the customers. If a customer wishes to purchase one or two sample items, the salesperson can sell these for cash or on the account. To obtain more inventory, the salespeople go to the warehouse and restock the vehicles themselves.
Requirement
Explain one relevant internal control weakness and make a recommendation to address this weakness. If more than one weakness is identified only the first one will be marked.
Auditing and Assurance services an integrated approach
ISBN: 978-0132575959
14th Edition
Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley