Question

E8-13 Identifying internal controls Consider each situation separately. Identify the missing internal control procedure from these characteristics: • Assignment of responsibilities • Separation of duties • Audits • Electronic devices • Other controls (specify)

Answer 1

Answer to Question

Sr. no.	Missing Control procedure	Reason
a	Separation of duties	Here order as well as approve invoice for payment is done by same employee. so, control procedure inform of separation of duties is missing
b.	Electronic Device	Here due to business slow on Tuesday Wednesday and Thursday business decide to not use ticket tacker machine and responsibility given to ticket seller. So, control procedure inform of Electronic Device is missing
c.	Assignment of responsibility	Here same trusted employee served as cashier for 12 years. So, control procedure informs of Assignment of responsibility is missing
d	Audit	Here cash will build up over weekends and total will be deposited on Monday and there is no subsequent verification of it so, control procedure inform of Audit is missing
e	Assignment of responsibility	Here manager follow different procedure at respective store actually here need to assign responsibility store wise to respective manager of store So, control procedure informs of Assignment of responsibility is missing