Following are partial descriptions of internal control structures.

1. When Mr. Clark orders materials for his machine-rebuilding plant, he sends a duplicate purchase order to the receiving department. During the delivery of materials, Mr. Smith, the receiving clerk, records the receipt of shipment on this purchase order. After recording, Mr. Smith sends the purchase order to the accounting department, where it is used to record materials purchased and accounts payable. The materials are transported to the storage area by forklifts. The purchased quantities are recorded on storage records.

2. Every day hundreds of employees clock in using time cards at Generous Motors Corporation. The timekeepers collect these cards once a week and deliver them to the computer department. There the data on the cards are entered into the computer. The information entered into the computer is used in the preparation of the labor cost distribution records, the payroll journal, and the payroll checks. The treasurer, Mrs. Webber, compares the payroll journal with the payroll checks, signs the checks, and returns them to Mr. Strode, the supervisor of the computer department. The payroll checks are distributed to the employees by Mr. Strode.

3. The smallest branch of Connor Cosmetics in South Bend employs Mary Cooper, the branch manager, and her sales assistant, Janet Hendrix. The branch uses a bank account in South Bend to pay expenses. The account is kept in the name of "Connor Cosmetics--Special Account." To pay expenses, checks must be signed by Mary Cooper or by the treasurer of Connor Cosmetics, John Winters. Cooper receives the canceled checks and bank statements. She reconciles the branch account and files canceled checks and bank statements in her records. Monthly, she prepares reports of disbursements and sends them to the home office.

Required: (a) List weaknesses in internal control for each of the above. (b) State the type(s) of misstatement that may occur. (c) Suggest how the internal control could be improved.