For Each of the Following Procedures, Indicate Whether It Is

question 33

Essay

For each of the following procedures, indicate whether it is an internal control strength or a weakness. Also, for each weakness, explain why it is a weakness and how it can be corrected.
(a)Only the best ac counting graduates are hired to eliminate the need for training.
(b)The person responsible for or dering and receiving supplie s is not pemitted to rec ord or pay for the supplies.
(c)Company policy mandates that all employees take vacation time.
(d)Internal auditors constantly monitor the internal control system.
(e)The accountant deposits cash at least once each day to prevent holding large amounts of cash on hand.

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Definitions:

Liability

Liability refers to the legal responsibility for one's actions or failings, which can result in the obligation to compensate for harm caused or to fulfill a contractual agreement.

Self-Dealing

Any instance in which directors or officers make decisions that violate their corporate duty of loyalty.

Penalty

A punishment imposed for breaking a law, rule, or contract which often involves paying a fine or undergoing some form of restraint.

Implied Powers

Powers not explicitly stated but are considered necessary for fulfilling the expressly granted powers of an authority or government body.