For Each of the Independent Cases Below,identify the Principle of Internal

question 56

Essay

For each of the independent cases below,identify the principle of internal control that is violated,and recommend what should be done to remedy the violation.
1.In order to save money,Indigo Company has decided to drop its property insurance on assets; and stop bonding the cashiers who handle upwards of $5,000 in cash each day.
2.Jobs Company records each sale on a preprinted invoice.Because invoices are sometimes damaged in the process of preparation,the invoices are not prenumbered.Instead,the sales clerk writes the next number on each invoice as it is prepared.
3.Keegan Company is a very small business.Dylan Epps,one of the two office clerks,opens the mail each day and removes the cash receipts that come in the mail.Dylan also records the receipts in the cash records and the customer's account and deposits the cash in the bank.
4.Ludwig Company prides itself on hiring only the most competent employees.The owner,Jeremy Ludwig,believes that since the employees are highly competent he can show he trusts them completely by not checking up on their performance.
5.Maple Industries is a small business with three accounting employees.Each employee is well-trained and able to perform any of the accounting tasks,including handling cash receipts and cash payments,and preparing the bank reconciliation.Because of this cross-training,the employees share responsibilities for all of the tasks.

Analyze the impact of trade on economic output and progress.

Comprehend how exchange creates value and facilitates economic progress.

Identify the conditions under which individuals and nations gain from trade.

Understand the concept of the production possibilities curve (PPC) and its implications on resource use and efficiency.

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Definitions:

Opportunity Cost

The cost associated with the best foregone choice because of a decision.

Machinery

A category of physical hardware used in the production process, including tools, engines, and devices that perform various tasks.

Sweaters

Knitted garments intended to cover the torso and arms, providing warmth and fashioned from materials like wool, cotton, or synthetic fibers.

Comparative Advantage

The ability of a country, company, or individual to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade and production.