For Each of the Following Situations,indicate Which Internal Control Procedure

question 64

Essay

For each of the following situations,indicate which internal control procedure Johnson Company has violated:
1.Since they are costly,background checks are not done for the employees.
2.Purchases of items on credit do not need the approval of the purchasing department.
3.All hard copies of documents are shredded after one month and electronic records are deleted after two months.
4.The company does not prepare operating or cash budgets.
5.The accountant receives the checks from customers in payment of amounts due and records the cash receipts.
6.There are no locks in the area where inventory is stored.
7.The hiring,firing and pay adjustments are made by the foremen in the manufacturing area.

---

Definitions:

Anti-Imperialist League

Coalition of anti-imperialist groups united in 1899 to protest American territorial expansion, especially in the Philippine Islands; its membership included prominent politicians, industrialists, labor leaders, and social reformers.

Unrestricted Minting

The process of producing coins in unlimited quantities without regard to the economic consequences, such as inflation or the devaluation of currency.

Silver Money

Currency that is minted from silver, historically used as standard money in many economies before the adoption of gold standards or fiat currency systems.

William Jennings Bryan

William Jennings Bryan was a leading American politician and orator of the late 19th and early 20th centuries, known for his advocacy for populism, prohibition, and his three unsuccessful presidential campaigns.