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Internal Control Questionnaire Items: Possible Error or Fraud Due to Weakness. Refer to the internal control questionnaire for the production cycle (Appendix Exhibit 9A.1) and assume that the answer to each question is no. Prepare a table matching questions to errors or frauds that could occur because of the absence of the control. Your column headings should be as follows:

Question Possible error or fraud due to error

1. Is cost accounting separate from production, payroll, and inventory control?

2. Is access to blank production order forms restricted to authorized persons?

3. Is access to blank bills of materials and labor needs forms restricted to authorized persons?

4. Is access to blank material requisition forms restricted to authorized persons?

5. Are production orders prepared by authorized persons?

6. Are bills of materials and labor needs prepared by authorized persons?

7. Are material usage reports compared to raw material stores issue forms?

8. Are labor usage reports compared to job time tickets?

9. Are material requisitions and job time tickets reviewed by the production supervisor after the floor supervisor prepares them?

10. Are the weekly direct labor and materials used reports reviewed by the production supervisor after preparation by the floor supervisor?

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