ACCT 551 Week 5 Case Study Internal Control of companies answer

Situation a. In evaluating the internal control over inventory for the Williams Oil Services Company, an auditor learns that the warehouse receiving clerk is responsible for ordering parts  for supply inventory use in drilling services, counts the inventory when received at the dock, records the receipts into the inventory ledger, and takes the annual inventory,  No supervisor reviews the receiving clerk’s work.

1. Identify the missing internal control characteristic in each situation.

2. Identify each firm’s possible problem.               

3. Propose a solution to the problem.

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