1. Each week, Katja leaves 100 company checks in an unmarked envelope on a shelf behind the cash register.
2. The store manager personally approves all payments before signing and issuing checks.
3. The company checks are unnumbered.
4. After payment, bills are “filed” in a paid invoice folder.
5. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner.
my answer is
1. checks are not stored in a secure area./ physical controls
2.the approval and payment of bills is done by the same individual.
3.checks are not pre numbered.
4.filling does not prevent a bill from bing paid more than once./documentation procedures.
5.the bank reconciliation is not independently prepared.
independent internal verification. 3?
segregation of duites 2?
establishment of responsibility 5?
human resources control
im sure the part i have done are correct. but i have no idea for the others
1. checks are not stored in a secure area (locked drawer or safe)/ physical controls
2. the approval and payment of bills is done by the same individual/segregation of duties
3. checks are not pre numbered. They should be numbered by the bank preferably. /adequate records (documentation)
4. filing does not prevent a bill from being paid more than once. A "paid" stamp should be used on all invoices as soon as they're paid to prevent re-submission for payment/documentation procedures.
5. the accountant can prepare the bank reconciliation, but they should be reviewed regularly by someone else whether or not there are discrepancies / Perform regular and independent reviews