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Parson Company Procedures

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Listed below are five procedures followed by Parson Company.

1. Several individuals operate the cash register using the same register drawer.
2. A monthly bank reconciliation is prepared by someone who has no other cash
responsibilities.
3. Fran Vorbeck writes checks and also records cash payment journal entries.
4. One individual orders inventory, while a different individual authorizes payments.
5. Unnumbered sales invoices from credit sales are forwarded to the accounting department
every four weeks for recording.

Instructions
Indicate whether each procedure is an example of good internal control or of weak internal
control. If it is an example of good internal control, indicate which internal control
principle is being followed. If it is an example of weak internal control, indicate which
internal control principle is violated. Use the table below.

Procedure    IC Good or Weak?   Related Internal Control Principle

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