Title: Internal Controls
Author: all
Last saved by: Holly

Internal Control – Part 2
Activity 1: Internal Control System

Read each of the following business practices. 
Is the practice described an effective internal control system or does it show a weakness in internal controls?

Internal Controls Worksheet

Business Practice | Strength/Weakness | Reason
a) All cash received is deposited in the bank each day. | |
b) The same employee who operates the cash register also records the sales entries in the general journal. | |
c) Extra supplies are kept in an unlocked storage closet at the back of the store. | |
d) Cheques are issued for all business payments. | |
e) The owner pays cash for most transactions to save the cost of bank fees. | |
f) The owner signed a bunch of blank cheques to be used by his employees when he goes away on vacation. | |
g) The employees are responsible for receiving cash from the customers. The owner is responsible for recording the transactions in the general journal. | |
h) The owner signs into the cash register at the beginning of the day. All three employees use the cash register to process sales. | |