The following situations are independent of each other.
1. Jim's Electronic Games is a very relaxed place to work. Unissued blank cheques are left in a box on the floor near the printer.
2. XL Products requires every cheque to be signed by the President and the VP Finance. Because the President travels a lot, he signs several blank cheques in advance of each trip so that his absences will not interfere with the operations of the Accounts Payable department.
3. Dubois Books is short staffed and the accounting department is very busy. As soon as the cheques are printed they are sent to the Executive office to be signed while the invoices that were paid are immediately filed so that the work will not get backlogged.
4. At Nora Sales, two accounting clerks share cheque disbursement duties. They can tell which invoices have been paid by whether they are located in the "unpaid" basket or in the vendor file.
Instructions
For each weakness, describe what could go wrong and make a recommendation to improve internal control.

Question

Quizplus · Accepted Answer

The Answer of The following situations are independent of each other.
1. Jim's Electronic Games is a very relaxed place to work. Unissued blank cheques are left in a box on the floor near the printer.
2. XL Products requires every cheque to be signed by the President and the VP Finance. Because the President travels a lot, he signs several blank cheques in advance of each trip so that his absences will not interfere with the operations of the Accounts Payable department.
3. Dubois Books is short staffed and the accounting department is very busy. As soon as the cheques are printed they are sent to the Executive office to be signed while the invoices that were paid are immediately filed so that the work will not get backlogged.
4. At Nora Sales, two accounting clerks share cheque disbursement duties. They can tell which invoices have been paid by whether they are located in the "unpaid" basket or in the vendor file.
Instructions
For each weakness, describe what could go wrong and make a recommendation to improve internal control.

The Following Situations Are Independent of Each Other