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4. After payment, bills are "filed" in a paid invoice folder. (a) Weakness: Principle: Checks are not prenumbered. Checks are not stored in a secure area. Filing does not prevent a bill from being paid more than once. Unauthorized employees making purchases. Use of cash instead of checks; no prenumbered invoices The approval and payment of bills is done by the same individual. The bank reconciliation is not independently prepared. (b) Recommended Change: After payment, bills are "filed" in a paid invoice folder. (a) Weakness: Principle: Documentation Procedures. Establishment of Responsibility. Recommended Human Resource Controls. (b) Change: Independent Internal Verification. Physical Controls. Segregation of Duties, The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. (b) Recommended Change: 5. The company accountant Bills should be stamped PAID after payment. Checks should be prenumbered and subsequently accounted for Checks should be stored in a safe or locked file drawer. Only employees granted authority should make purchases for the store, Purchases should be paid with prenumbered checks and the purchases should be documented by a Someone with no other cash responsibilities should prepare the bank reconciliation The store manager should approve bills for payment and the treasurer should sign and issue checks (a) Weakness: 5. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner, (a) Weakness: Principle: Checks are not prenumbered. Checks are not stored in a secure area. Filing does not prevent a bill from being paid more than once. Unauthorized employees making purchases. Use of cash instead of checks; no prenumbered invoices The approval and payment of bills is done by the same individual The bank reconciliation is not independently prepared. (b) Recommended Change: 5. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner. (a) Weakness: Principle: (b) Recommended Change: Documentation Procedures. Establishment of Responsibility. Human Resource Controls. Independent Internal Verification. Physical Controls Segregation of Duties. (b) Recommended Change: e Textbook and Media Bills should be stamped PAID after payment. Checks should be prenumbered and subsequently accounted for. Checks should be stored in a safe or locked file drawer. Only employees granted authority should make purchases for the store. Purchases should be paid with prenumbered checks and the purchases should be documented by a Someone with no other cash responsibilities should prepare the bank reconciliation The store manager should approve bills for payment and the treasurer should sign and issue checks. Save for Later Last Saved 2 sece The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. (a) (b) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. For each weakness, suggest a change in the procedure that will result in good internal control

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