For each of these five separate cases, identify the principle of internal contro
ID: 2352232 • Letter: F
Question
For each of these five separate cases, identify the principle of internal control that is violated.Recommend what the business should do to ensure adherence to principles of internal control
3. Nadine Cox posts all patient charges and payments at the Dole Medical Clinic. Each night nadine backs up the computerized accounting system to a tape and stores the tape in a locked file at ther desk
4. Barto Sayles prides himself on hiring quality workers who require little supervision. As office manager. Barto gives his employees full discretion over their tasks and for years has seen no reason to perform independant reviews of thier work.
Explanation / Answer
(3) The principle violated is physical control. Although the tape is locked at her desk, there is risk that someone could steal the key or break the lock of the desk and manipulate the data in the tape. Instead, I would suggest it may be better if the backup is done centrally automatically or the tape should be kept in a place where there is restricted access. (4) The principle violated is supervision. Supervision is very important to ensure that the employee did follow the instruction of their superior. Barto should review their work to make sure that the task is carried out according to the company's policy. Hope this helps!
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