Sharon Is the Receptionist and Office Manager for the Best

question 79

Essay

Sharon is the receptionist and office manager for The Best Construction Company. Sharon handles all of the office duties including billing, cash receipts, payroll, depositing checks and preparing the monthly bank reconciliation. She also prepares all of the checks for disbursements and is an authorized signer on all checks under $25,000. For checks above this amount, two signatures are required. She has been a trusted employee of The Best Construction Company for many years, but still makes just a small amount above minimum wage. She is even the godmother to two of the owner's children and often watches them while their parents go on exotic vacations. Sharon is such a good employee that she rarely takes vacations. Since the owner trusts her completely, he concentrates on the construction business and leaves all of the office work to Sharon. He would never interfere with her work since he has very little accounting knowledge. Sharon has recently become a grandmother and enjoys buying her grandchildren expensive toys and clothes. She has just bought a new Hummer for herself and an exclusive condo in the Virgin Islands.
What are the five basic control procedures for any class of transactions? Using these five basic control procedures, what can be done to strengthen the internal control procedures for The Best Construction Company?

---

Definitions:

Primary Succession

A new community becomes established in an area where there was previously no soil.

Mosses And Lichens

These are diverse groups of non-vascular and composite organisms, respectively, that thrive in moist environments. Mosses are small, green, non-vascular plants, while lichens are symbiotic associations between fungi and photosynthetic algae or cyanobacteria.

Bare Rock

Exposed rock surfaces without soil or vegetation cover, often seen in extreme environments or as a result of land degradation.

Interacting Organisms

This term refers to different forms of life that affect each other's existence in an ecosystem, often engaging in various relationships like mutualism, parasitism, or predation.