Listed below are five procedures followed by Parson Company.
1. Several individuals operate the cash register using the same register drawer.
2. A monthly bank reconciliation is prepared by someone who has no other cash responsibilities.
3. Fran Vorbeck prepares checks and also records cash payment journal entries.
4. One individual orders inventory, while a different individual authorizes payments.
5. Unnumbered sales invoices from credit sales are forwarded to the accounting department every four weeks for recording.
Indicate whether each procedure is an ex of good internal control or of weak internal control. If it is an ex of good internal control, indicate which internal control principle is being followed. If it is an ex of weak internal control, indicate which internal control principle is violated. Procedure IC good or weak? Related internal control principle
1. Weak Good Human Resource Controls Segregation of Duties Establishment of Responsibility Independent Internal Verification Documentation Procedures Physical Controls
2. Weak ood Documentation Procedures Human Resource Controls Physical Controls Independent Internal Verification Establishment of Responsibility Segregation of Duties
3. Weak Good Human Resource Controls Independent Internal Verification Segregation of Duties Documentation Procedures Physical Controls Establishment of Responsibility
4. Weak Good Human Resource Controls Documentation Procedures Segregation of Duties Independent Internal Verification Physical Controls Establishment of Responsibility
5. Weak Good Physical Controls Human Resource Controls Establishment of Responsibility Independent Internal Verification Documentation Procedures Segregation of Duties