Identify the internal control weakness


Problem: Identify the internal control weakness in the given situations. State how the person can hurt the company. a. Mandy Morrison works as a security guard at POST parking in Oklahoma City. ­Morrison has a master key to the cash box where customers pay for parking. Each night Morrison prepares the cash report that shows (a) the number of cars that parked on the lot and (b) the day's cash receipts. Judy Gibson, the POST treasurer, checks Morrison's figures by multiplying the number of cars by the parking fee per car. Gibson then ­deposits the cash in the bank. b. Sophie Peterson is the purchasing agent for Pinkerton Sports Equipment. Peterson ­prepares purchase orders based on requests from division managers of the company. ­Peterson faxes the purchase order to suppliers, who then ship the goods to Pinkerton. Peterson receives each incoming shipment and checks it for ­agreement with the purchase order and the related invoice. She then routes the goods to the respective division managers and sends the receiving report and the invoice to the accounting department for payment.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Identify the internal control weakness
Reference No:- TGS03418006

Expected delivery within 24 Hours