Reference no: EM132823735

You were tasked to conduct a cash count on Mr. Abreeza, a Petty Cash Custodian, and noted the ff:

a. Petty cash vouchers on hand were not signed by Authorized Approver. Mr. Abreeza said that he lets his Supervisor sign them in lump upon replenishment of the PCVs.

b. There were meal expenses taken from the fund. In the PCV it was indicated that meal was given during a coordination meeting but no Minutes of the Meeting and list of attendees was attached or available.

c. Petty cash advances are allowed to be taken from the fund for official business transactions such as travel allowances, however, monitoring of advances was not established.

d. Cash box was not used to keep the fund. Instead cash was kept inside Custodian's own wallet. Mr. Abreeza reasons that this practice allows him mobility and easier access to cash when personnel need it.

Required:

Problem A. Identify weaknesses in the internal control of Petiks Company and state risk involved. Please give at least 3 internal control weaknesses and at least 1 risk for each weakness

Problem B. Propose at least 1 internal control policy to counter the risk identified.