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:

Standard Normal Distribution

A Gaussian distribution where the mean is zero and the standard deviation is one.

Between

Used to describe a relationship or comparison involving two or more variables or groups.

Z-scores

A measure of how many standard deviations an element is from the mean. It is used in statistics to identify how unusual or typical a data point is.

Standard Normal Distribution

A normal distribution with a mean of zero and a standard deviation of one, used as a basis for comparing other normal distributions.