Each of the following situations has an internal control weakness: a. Retail stores such as…

Each of the following situations has an internal control weakness:

a. Retail stores such as Target and Best Buy receive a significant portion of their sales revenue in cash. At the end of each day, sales clerks compare the cash in their own register with the record of sales kept within the register. They then forward the cash to a Brinks security officer for deposit in the bank. (p. 232)

b. The office supply company from which Martin Audiology Service purchases cash receipt forms recently notified Martin that the last-shipped sales receipts were not prenumbered. Derek Martin, the owner, replied that he did not use the receipt numbers, so the omission is unimportant to him. (pp. 219–220)

c. Azbell Electronics specializes in programs with musical applications. The company’s most popular product prepares musical programs for large gatherings. In the company’s early days, the owner and 8 employees wrote the programs, lined up production of the programs, sold the products, and performed the general management of the company. As Azbell has grown, the number of employees has increased dramatically. Recently, the development of a new musical series stopped while the programmers redesigned Azbell’s sound system. Azbell could have hired outsiders to do this task. (pp. 217–218)

d. Paul Allen, who has no known sources of outside income, has been a trusted employee of Chapparall Cosmetics for 20 years. Allen performs all cash-handling and accounting duties, including opening the mail, preparing the bank deposit, accounting for cash and accounts receivable, and preparing the bank reconciliation. Allen has just purchased a new Lexus. Linda Altman, owner of the company, wonders how Allen can afford the new car on his salary. (pp. 217–218)

e. Monica Wade employs 3 professional interior designers in her design studio. The studio is located in an area with a lot of new construction, and her business is booming. Ordinarily, Wade does all the purchasing of materials needed to complete jobs. During the summer, Wade takes a long vacation, and in her absence she allows each designer to purchase materials. On her return, Wade reviews operations and observes that expenses are higher and net income is lower than in the past. (pp. 217–218)

❙ Required

1. Identify the missing internal control characteristics in each situation.

2. Identify each firm’s possible problem.

3. Propose a solution to the problem.

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
error: Content is protected !!