Below Are Descriptions of Internal Control Problems

question 123

Short Answer

Below are descriptions of internal control problems. In the space to the left of each item, enter the code letter of the one best internal control principle that is related to the problem described.
1. The same person opens incoming mail and posts the accounts receivable subsidiary ledger.
2. Three people handle cash sales from the same cash register drawer.
3. A clothing store is experiencing a high level of inventory shortages because people try on clothing and walk out of the store without paying for the merchandise.
4. The person who is authorized to sign checks approves purchase orders for payment.
5. Some cash payments are not recorded because checks are not prenumbered.
6. Cash shortages are not discovered because there are no daily cash counts by supervisors.
7. The treasurer of the company has not taken a vacation for over 20 years.

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Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, crucial for maintaining bodily functions.

African Americans

A demographic group in the U.S. identified by their ancestral linkage to any of the black racial groups native to Africa.

Discrimination

Unfair or prejudicial treatment of individuals based on characteristics such as race, age, gender, or sexual orientation.

Myocardium

The thick middle layer of the heart wall composed of cardiac muscle, responsible for the heart's contractile movement.