For each of the following two situations, determine which principle of internal
ID: 2611765 • Letter: F
Question
For each of the following two situations, determine which principle of internal control has been violated. 1. Cashiers issue cash receipts only upon customer's request Choose One? 2. Blank checks are kept in an unlocked desk drawer. Choose One? Choose One ? Establishment of authority and responsibility Segregation of duties. Documentation procedures. Mechanical, physical, and electronic controls. Independent internal verification. Bonding of employees who handle cash. Employee job rotation and mandatory annual vacations. Undo HelpExplanation / Answer
(1) cashiers issue cash receipts only upon customers request violates documentation procedure.Because cash receipts result from cash sales, collection on account from customers; the receipt of interest,rents and dividend. etc
(2) Blank checks are kept in an unlocked desk drawer violates establishment of authority and responsibility
an essential characterstics of internal control is the assignment of responsibility to specific individuals.
establishing responsibility includes the authorization and approval of transactions.
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