Response to the following questions:
1. Why should the responsibility for maintaining the accounting records be separated from the responsibility for operations? Explain.
Assume that Julee Shiver, accounts payable clerk for Galaxy Inc., stole $110,000 by paying fictitious invoices for goods that were never received. The clerk set up accounts in the names of the fictitious companies and cashed the checks at a local bank. Describe a control procedure that would have prevented or detected the fraud.
2. Define internal control.