Question

consider each situation separately. identify the missing internal control procedure from these characteristics:

• assignment of responsibilities
• separation of duties
• audits
• electronic devices
• other controls (specify)

view the situations.

a. separation of duties

b. business is slow at top of the world amusement park on tuesday, wednesday, and thursday nights. to reduce expenses, the business 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.
internal control procedure\treason for \other\ control
b. separation of duties

c. the same trusted employee has served as cashier for 12 years.
internal control procedure\treason for \other\ control
c. other controls\tno job rotation

d. when business is brisk, everything mart 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 the manager starts a new policy. cash will build up over weekends, and the total will be deposited on monday.
internal control procedure\treason for \other\ control
d.

Explanation:

a. Separation of duties helps prevent fraud by ensuring no single person has complete control over a process.
b. Without a ticket - taker, the ticket - seller having to keep the tickets as a record is a lack of separation of duties. The ticket - seller could manipulate the number of tickets sold.
c. Long - term employment of the same cashier without job rotation is a risk. Job rotation helps in detecting fraud and errors as a new person may notice irregularities.
d. Allowing cash to build up over weekends and depositing it only on Monday is a lack of proper cash management. It increases the risk of theft or misappropriation. The missing internal control procedure is proper cash - handling procedures.

Answer:

a. Separation of duties
b. Separation of duties
c. Other controls (No job rotation)
d. Other controls (Lack of proper cash - handling procedures)