70.2K

Verified Solution

Link Copied!

Read the following scenario: At Hutchingson Company, checks are prenumbered and the treasurer are authorized to issue checks. Each signer has access to unissued checks kept in an unlocked file cabinet. The purchasing agent pays all bills pertaining to goods purchased for resale. Prior to payment, the purchasing agent determines that the goods have been received and verifies the mathematical accuracy of the vendor's invoice. After payment, the invoice is filed by the vendor, and the purchasing agent records the payment in the cash disbursements journal. The treasurer pays all other bills following approval by authorized employees. After payment, the treasurer stamps all bills PAID, files them by payment date, and records the checks in the cash disbursements journal. Hutchingson Company maintains one checking account that is reconciled by the treasurer Initial Post: Identify two internal control problems in the paragraph above and discuss for each one: What control activity is being violated? How could this allow an opportunity for fraud? What should they do correct the problem? (10 points) NOTE: You must post first, before you can see your classmate's posts. Two Replies: Read the responses of two other students and reply to them, discussing the weakness and control that they are suggesting. Post must be 20-40 words and contain content that relates to their initial post. (Note: posting to replies on your own initial post does not count as a reply to another student.) You can earn 5 points each response, up to 8 points when you reply to the initial posts of two other students

Answer & Explanation Solved by verified expert

See Answer