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Indicate If the Following Practices Reflect Strong or Weak Internal

Question 76

Essay

Indicate if the following practices reflect strong or weak internal controls, and why.
1. Hugo Friedkin works in the sales department where a new employee, Lydia Spring, has been hired. Hugo adds Lydia to payroll.
2. Payroll amounts are computed by an HR employee and the supervisor approves the amounts.
3. Estevez, the treasurer, signs and distributes prenumbered paychecks to the employees.

Correct Answer:

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1. Weak. Only human resources employees ...

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