For Each of the Following Situations, Indicate Which Internal Control

Essay

For each of the following situations, indicate which internal control procedure ABC company has violated:
_____ 1. Since they are costly, background checks are not done for the employees.
_____ 2. Purchases of items on credit do not need the approval of the purchasing department.
_____ 3. All hard copies of documents are shredded after one month and electronic records are deleted after two months.
_____ 4. The company does not prepare operating or cash budgets.
_____ 5. The accountant receives the cash and records the cash receipts.
_____ 6. There are no locks in the area where inventory is stored.
_____ 7. The hiring, firing and pay adjustments and made by the department foremen.