Identify the missing internal control characteristic in the following situations-2:?


Barbara Shapiro manages the "Suspense" account at Texoma Oil Co. Amounts go into the "Suspense" account when Texoma needs to pay oil royalties to a property owner who cannot be identified. Some royalty amounts are unclaimed for years, so the "Suspense" account holds several million dollars. Ms. Shapiro alone is responsible for releasing amounts from "Suspense."


Grocery stores such as Kroger and Winn Dixie purchase large quantities of merchandise from a few suppliers. At another grocery store, the manager decides to reduce paperwork. He does not require that the receiving department prepare a report to list the items received.

Competent, reliable, and ethical personnel

Assignment of responsibilities

Proper authorization

Supervision of employees

Separation of duties

Internal and external audits

Documents and records

Electronic and computer controls

Other controls

1 Answer

  • Anonymous
    1 decade ago
    Favorite Answer

    d. separation of duties. Barbara could be sending money to "unidentified" people who she knows and nobody would be the wiser.

    e. documents and records. goods could be pilfered or never delivered and nobody would know if they received the proper shipment or not.

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