Leslie Epstein, an employee of Bormack Manufacturing Company, prepares journal v

Question

Leslie Epstein, an employee of Bormack Manufacturing Company, prepares journal vouchers for general ledger entries. Because of the large number of voided journal vouchers caused by errors, the journal vouchers are not prenumbered by the printer; rather, Leslie numbers them as she prepares each journal voucher. She does, however, keep a log of all journal vouchers written so that she does not assign the same number to two journal vouchers. Biweekly, Leslie posts the journal vouchers to the general ledger and any necessary subsidiary accounts. Bimonthly, she reconciles the subsidiary accounts to their control accounts in the general ledger and makes sure the general ledger accounts balance.

Discuss five potential control weaknesses and solution to the scenario

So far i have

1. the journal vouchers are not prenumbered by the printer

2. Leslie numbers them as she prepares each journal voucher.

Explanation / Answer

They should get the printer fixed so that they can print pre numbered vouchers . Leslies should not be allowed to post the journal vouchers . for she is sole respoosible for vouchers , posting , and balancing which is a matter of serious concer as this can be indication of fraud. She has too much access to the books which means it is prone to errors and mnipulation of books by leslie as their is no check, thus one major control weakeness where no inspection is carried .

There is lack of training of employees and there are not sufficient enough employed to look into vairous steps .Other internal control weakness is that they are using manual methodology instead of technology.

Thus they can rectify by getting printer fixed, training employees , hiring more employees for each individual action , inspection of books .

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