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Identify the internal control weakness in the following situations. State how the person can hurt the company.
a. Jason Monroe works as a security guard at CITY parking in Dayton. Monroe has a master key to the cash box where customers pay for parking. Each night Monroe prepares the cash report that shows (a) the number of cars that parked on the lot and (b) the days cash receipts. Linda Cooper, the CITY treasurer, checks Monroe’s figures by multiplying the number of cars by the parking fee per car. Cooper then deposits the cash in the bank.
b. Ashley Adams is the purchasing agent for Superior Golf Equipment. Adams prepares purchase orders based on requests from division managers of the company. Adams faxes the purchase order to suppliers who then ship the goods to Superior. Adams receives each incoming shipment and checks it for agreement with the purchase order and the related invoice. She then routes the goods to the respective division managers and sends the receiving report and the invoice to the accounting department for payment.
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