A company employs three accounts payable clerks and one treasurer. Their responsibilities are as follows:
Employee /Responsibility
Clerk 1 Reviews vendor invoices for proper signature approval.
Clerk 2 Enters vendor invoices into the accounting system and verifies payment terms.
Clerk 3 Posts entered vendor invoices to the accounts payable ledger for payment and mails checks.
Treasurer Reviews the vendor invoices and signs each check.
Which of the following would indicate a weakness in the company's internal control?
a. Clerk 1 opens all of the incoming mail.
b. Clerk 2 reconciles the accounts payable ledger with the general ledger monthly.
c. Clerk 3 mails the checks and remittances after they have been signed.
d. The treasurer uses a stamp for signing checks.
Answer: C
CPA Exam
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