You Are Working on the Bemco Audit

question 51

Essay

You are working on the Bemco audit. Assume that each of the four sections of this question are unrelated. Bill Wedman, another staff member, has given you the following list of what he refers to as "internal control deficiencies" and has asked you to review each point and make sure that you agree that each is an internal control deficiency. $\begin{array}{|l|l|c|c|}\hline&&\text{Agree, this is a control deficiency}&\text{Disagree, this is not a control deficiency}\\\hline \text { 1. } & \text { Voided checks are torn up and destroyed. } & 0 & 0 \\\hline \text { 2. } & \begin{array}{l}\text { Separate sequences of prenumbered checks are used tor each bank } \\\text { account. }\end{array} & 0 & 0 \\\hline \text { 3. } & \begin{array}{l}\text { The purchasing department manager and assistant manager are the } \\\text { authorized check signers. }\end{array} & 0 & 0 \\\hline \text { 4. } & \text { No checks are made payable to cash. } & 0 & 0 \\\hline 5. &\text{The authorized check signers reconcile bank accounts.}& 0 & 0 \\6.&\text{All cash receipts (checks) received through the mail are prelisted by the two}& 0 & 0 \\&\text{ individuals who open the mail.}\\\hline 7.& \text{All cash receipts received through the mail are restrictively endorsed when}\\&\text{received.}& 0 & 0 \\\hline 8.& \text{When a disbursement is made based on paper supporting documents, those}\\& \text{supporting documents are canceled by the indwidual who signs the check.}& 0 & 0 \\\hline\end{array}$

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Definitions:

Common Task

A shared activity or assignment that requires the collaboration and effort of a group or team to accomplish a specific goal.

Functional Departments

Units within an organization that are grouped based on specific tasks or roles, such as marketing, finance, or human resources.

Team Viability

The capacity of a team to work effectively over time and maintain a healthy and productive working relationship among members.

Team Effectiveness

The degree to which a team achieves its objectives, meets the needs of its members, and sustains its performance over time.