Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control violated or followed for each procedure. a. The same employee requests, records, and makes payment for purchases of inventory.
b. The company saves money by having employees involved in operations perform the only review of internal controls.
c. Time is saved by not updating records for use of supplies.
d. The recordkeeper is not allowed to write checks or initiate EFTs.
e. Each salesclerk is in charge of their own cash drawer.

a. Weakness ⇒ Divide responsibility for related transactions.

This is a weakness because there is a chance of fraud occurring if the employee has all that responsibility. It is best to divide responsibilities for related transactions.

b. Weakness ⇒ Perform regular and independent reviews.

This is also a weakness because independent reviews are important for an objective opinion. These reviews should be regular as well.

c. Weakness ⇒ Maintain Adequate Records.

This is a weakness because records need to be updated to remain relevant and adequate.

d. Strength ⇒ Separate record-keeping from custody of assets.

The company is following the right procedure in doing this because it shows that they are separating record-keeping from those who can initiate transactions and have custody of assets.

e. Strength ⇒ Establish Responsibilities.

This is also a strength because it establishes responsibility such that only the salesclerk can access their cash drawers and can thus are responsible for it such that anything missing can be successfully tracked.

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi