Indicate If the Following Practices Reflect Strong or Weak Internal

question 56

Essay

Indicate if the following practices reflect strong or weak internal controls, and why.
1. Hugo Friedkin works in the sales department where a new employee, Lydia Spring, has been hired. Hugo adds Lydia to payroll.
2. Payroll amounts are computed by an HR employee and the supervisor approves the amounts.
3. Estevez, the treasurer, signs and distributes prenumbered paychecks to the employees.

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Definitions:

Participative Management

A management style in which employees at all levels are encouraged to contribute ideas towards identifying and solving problems, making decisions, and setting goals.

Wellness Programs

Initiated by employers to promote healthy lifestyles among employees, often including fitness, nutrition, and mental health services.

Organizational Productivity

A measure of how efficiently an organization converts inputs into outputs, often evaluated by the ratio of outputs to inputs.

S.T.E.P. Acronym

A reference to the STEP (Social, Technological, Economic, Political) analysis, a framework for scanning the business environment.