Question

;Internal Control At the corner grocery store, all sales clerks make change out of the same cash register drawer. Is this a violation of internal control? Why? discuss in detail. Part 2: Limitations on Internal Control Though companies might do their best to enact internal control procedures, it doesn't mean it will always work. Discuss 1-2 reasons why internal control might not work, despite best efforts. In addition, discuss how employers should enact procedures for internal control for the most risky activities.

Answer 1

Yes at vtoloteu the internal coutrol Astem f empleyes Seqgetion of olutie cash regiter between if the and physical cash under peMon, theu he mituse the of fame the Control COun cash This egster and enample for degeretim iertane Respnaitilit of the ghould be asigned 0efity and the rupontiblit of seperate from the pheal relatad to differeut individuals be leord beeping fhould custod of that parficulat attet in the auestion statemeut giveu So the above contsol ystew violation ofntenal

Past- Reasone Why Internal Coubol Might Not hoak esptte as follost: Best &fforlt ale Dakof judgemeut ohile tating deeiston Intemal Contiol miqkt fail alue to xe act taltng conplete infornation eguired for malting of indiui olualt resprul- the cleciton migut not he equiped that incuiduals the uoitt of te uote dectcion deaiston moleng ale net bacbed ith ible for the tke exyetenee equired for ti pupose Attrtude of the Managemeut of the Organtathon couticl despect to tke iaternal With -time mousgemeut themtelves wuentele Many Interrol coutrolr because they feel that tke tthese inemvenieut o înamomate awol tterefoe Coutrolt ale dloat apl to tkem

(3) Oceunence o thex pected duet.- why internal Internal Contol Aystem The reacon controls dont wort dlectqued certain ange ot that the ale certain uations taclete when the 0etual evente and Valiables happe beyond the contiol teme may not be able to tatble them then the intemal expeatrd ange effectively Employers Ahed enat the Contiol for trlg pjet delloustng preceduves for internal D Seperation of uties omploger Ogaui ation Ahould wort touarels Seperation of oluties pexton har complete tereby In esfonitoalities esponst bilifar any job and pebabtof faud happing ard o thet one edluces the case of ganization which have rirty etreatial that no activties, tt employee has complete control ouer tre ih activit to te gouiation clesnt sufter adueel become tgle and

(4 () tandavdisotien ofAocumentalion Veryeffectie pcecue odepled by Thi i the emplge conttency Po -thot it hetomes and tordordi- s0 Thot there i 2ulion in he dncumenlation louado sevleuo he past protest af tke dictepancier ecosel easic's of the oot coue fdextifjing 3) -Aypoval of Autkordty espons Lnpleen hould have managem who ate -for oukin the Specilte tranto clioat So thot Jayex of enit atating it odditional puts the ngani etion importaut and ik the popni ate and repentible designated outhories in On t cleax that all Po tkal in bave beek ctivvrties ousalyend Poysical phudite Phozscod ualit i a 4) past of inlernal coutrol bandling it aclivities bighlight cund banes out hiclden. in cae of sly tern in oganieathns exberely importaut the dieveporcier tket ectivilies these physicol Oere frqueuty ouolil houldbe Out Curied