00:01
Identify which control activity is violated in each of the following situations.
00:06
Once a month, the sales department sends sales invoices to the accounting department to be recorded.
00:11
This control activity violates the documentation procedures.
00:17
Documentation procedures are documents that everyone in your company has access to.
00:22
They lay out all the steps for particular tasks that need to be undertaken and repeated consistently.
00:27
Too many restrictions and rules can actually paralyze support for providing excellent service.
00:33
In the given case here, the documentation is not proper and may lead to missing sales invoices and thus reducing revenue.
00:40
If they're only sending them once a month, this creates an undue burden in the sense that why aren't they sending them daily or weekly to ensure that they're being trapped properly and timely and to make sure that none get lost and therefore don't get recorded thereby affecting revenue.
00:58
Lee hutcherson orders merchandise for rice state company.
01:02
She also receives merchandise and authorizes payment for merchandise.
01:06
This control activity violates segregation of duties.
01:10
She's the one receiving it, purchasing it, authorizing it, doing everything with it...