1. Provide at least five examples of typical internal control weaknesses.
1. Paying a bill involves approving the spending, issuing the check and keeping a record of
the dealings.
2. If you bring regular reports from manufacturing that, include some items sent, and from
sales with total sales figures, total sales over a period have to equal total items shipped.
3. New merchandise may require an authorization to proceed with a conception, several
approvals during the patterning process, an authorization to ship it to manufacture and
an authorization to send it.
4. Assessment can apply a standardized process for digital access, identifying which
networked computers and servers should have restricted admission and the potency of
the mysteries.
5.
2. How is materiality determined?
• By 5% of income from continuing operations normalize
• 5% of net income before bonus
• ½ to 2% of revenues or expenses for non-for profit entities
