Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the following control procedures are used in bunny

The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. (a) For...

50.1K

Verified Solution

Question

Accounting

image
image
image
The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements. (a) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated. Weakness Principle Violated 1 2 . Procedure Each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register The store manager personally approves all payments before she signs and issues checks. The store purchases used goods for 3 (0). estion 9 of 9 -11 (i). The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. The purchase is documented by having the store employee write on a piece of paper 3 (ii). - write on a piece of paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and puts it in the register. After payment, bills are "filed" in a paid invoice folder The company accountant who records cash transactions also prepares the bank reconciliation and reports

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students