A Company Employs Three Accounts Payable Clerks and One Treasurer

Multiple Choice

A company employs three accounts payable clerks and one treasurer.Their responsibilities are as follows: Which of the following would indicate a weakness in the company's internal controls? $$\begin{array} { l l } \underline { \text { Employee } } & { \underline { \text { Responsibility } } } \\\text { Clerk 1 } & \text { Reviews vendor invoices for proper signature approval. } \\\text { Clerk } 2 & \text { Enters vendor invoices into the accounting system and verifies } \\&\text { payment terms. } \\\text { Clerk } 3 & \text { Posts entered vendor invoices to the accounts payable ledger for } \\& \text { Payment and mails checks. } \\\text { Treasurer } &\text { Reviews the vendor invoices and signs each check. }\end{array}$$

A) Clerk 1 opens all of the incoming mail.
B) Clerk 2 reconciles the accounts payable ledger with the general ledger monthly.
C) Clerk 3 mails the checks and remittances after they have been signed.
D) The treasurer uses a stamp for signing checks.