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:

Confounding Variable

An external factor in an experiment that can affect the results in a way that is not intended, making it difficult to establish a clear cause-and-effect relationship.

Poverty Level

A defined threshold by the government or organizations below which individuals or families are considered to be lacking the financial resources to meet basic needs for living.

Aggressive Children

Children who exhibit behaviors that are intended to cause harm or discomfort to others, such as hitting, biting, or verbal insults.

Economic Status

The social standing or class of an individual, group, or area based on factors like income, education, and employment.