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.

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Definitions:

Proficiency

Refers to a high degree of competence or skill in a particular activity or field.

Expertise

specialized knowledge or skills acquired through training, study, or experience in a particular field or area.

Emotional Intelligence

The ability to recognize, understand, and manage one's own emotions as well as the emotions of others.

Human Skills

Abilities that enable a person to interact effectively and harmoniously with others, often considered essential for managers and leaders.