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
Supervision of employees
Separation of duties
Internal and external audits
Documents and records
Electronic and computer controls
- Anonymous1 decade agoFavorite 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.