Recommend internal control(s) to prevent, detect, and/or correct the items of concern in the future,...
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Accounting
Recommend internal control(s) to prevent, detect, and/or correct the items of concern in the future, and clearly identify the type of each control (preventive, detective, and/or corrective). You may use any format (such as sentences, bullet points, etc.) to answer this question. Leslie Knope runs a company called Parks 4 You. Leslie's employees include two internal auditors who monitor internal controls and also search for ways to improve the company's operational effectiveness. As part of the monitoring process, the internal auditors take turns conducting periodic reviews of the accounting records. For instance, the company takes a physical inventory count at all stores once each year and an internal auditor oversees the process. The most senior internal auditor just completed a review of the accounting records and discovered items of concern. These were: a) Physical inventory counts varied from inventory book amounts by more than 6% at two of the stores. In both cases, physical inventory was lower. b) At four of the stores, bank deposit slips did not match cash receipts. c) One of the stores had an unusual number of bounced checks. It appeared that the same employee was responsible for approving each of the bounced checks. d) Two of the stores appear to have an unusually high amount of sales returns for cash
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