Reference no: EM132911582

For each of the given misstatement cases, provide the internal control weakness and the internal control measure that could have prevented it from happening.

1. A cashier failed to ring up and record cash sales and pockets the cash. (Ring up means to record and total a sale using cash register machine)
2. A loan against existing equipment is not recorded in the accounting records. The cash receipts from the loan never reached the company because they were used for the down payment on a piece of equipment now being used as an operating asset. The new equipment too is not recorded in the books
3. Expenditures for repairs and maintenance are recorded as property, plant and equipment to overstate income
4. Capitalizable asset are routinely expenses as repairs and maintenance, perishable tools or supplies expense
5. The asset lives used to depreciate equipment are less than reasonable expected useful lives