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At Idaho Company checks are not prenumbered because both the purchasing agent
and the treasurer are authorized to issue checks. Each signer has access to unissued
checks kept in an unlocked file cabinet. The purchasing agent pays all bills pertaining to
goods purchased for resale. Prior to payment, the purchasing agent determines that the
goods have been received and verifies the mathematical accuracy of the vendor’s invoice.
After payment, the invoice is filed by vendor and the purchasing agent records the payment
in the cash disbursements journal. The treasurer pays all other bills following approval
by authorized employees. After payment, the treasurer stamps all bills “paid,” files
them by payment date, and records the checks in the cash disbursements journal. Idaho
Company maintains one checking account that is reconciled by the treasurer.
(a) List the weaknesses in internal control over cash disbursements.
(b) Write a memo indicating your recommendations for improving company

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