Identify the missing internal control in the following situations. Select from these

characteristics:

• Competent, reliable personnel                                • Audits

• Assignment of responsibilities                                 • Electronic and computer controls

• Separation of duties                                                   • Other controls (specify)

a. The same trusted employee has served as cashier for 10 years.

b. Grocery stores such as Safeway and Meier’s purchase most merchandise from a few suppliers. At another grocery store, the manager decides to reduce paperwork. He eliminates the requirement that the receiving department prepare a receiving report, which lists the quantities of items actually received from the supplier.

c. When business is brisk. Stop-n-Go deposits cash in the bank several times during the day. The manager at one store wants to reduce the time employees spend delivering cash to the bank, so he starts a new policy. Cash will build up over Saturdays and Sundays, and the total two-day amount will be deposited on Sunday evening.

d. While reviewing the records of Discount Pharmacy, you find that the same employee orders merchandise and approves invoices for payment.

e. Business is slow at Fun City Amusement Park on Tuesday, Wednesday, and Thursday nights. To reduce expenses, the owner decides not to use a ticket taker on those nights. The ticket seller (cashier) is told to keep the tickets as a record of the number sold.