the following situations suggest a strength or a weakness in 267249

The following situations suggest a strength or a weakness in internal control.

a. Top managers delegate all internal control procedures to the accounting department.

b. The accounting department orders merchandise and approves invoices for payment.

c. Cash received over the counter is controlled by the sales clerk, who rings up the sale and places the cash in the register. The sales clerk matches the total recorded by the register to each day’s cash sales.

d. The officer who signs checks need not examine the payment packet because he is confident the amounts are correct.

Requirements

1. Define internal control.

2. The system of internal control must be tested by external auditors. What law or rule requires this testing?

3. Identify each item as either a strength or a weakness in internal control and give the reason for your answer.