The following control procedures are used in bunny's boutique shoppe for cash disbursements. for each procedure, explain the weakness in internal control and identify the internal control principle that is violated.1. each week, 100 company checks are left in an unmarked envelope on a shelf behind the cash register.2. the store manager personally approves all payments before she signs and issues checks.3. the store purchases used goods for resale from people that bring items to the store. since that can occur anytime that the store is open, all employees are authorized to purchase goods for resale by disbursing cash from the register. the purchase is documented by having the store employee write on a piece of paper a description of the item that was purchased and the amount that was paid. the employee then signs the paper and puts it in the register.4. after payment, bills are filed' in a paid invoice folder.5. the company accountant prepares the bark reconciliation and reports any discrepancies to the owner.

The east asiatic company (eac), a danish company with subsidiaries throughout asia, has been funding its bangkok subsidiary primarily with u.s. dollar debt because of the cost and availability of dollar capital as opposed to thai baht-denominated (b) debt. the treasurer of eac-thailand is considering a 1-year bank loan for $247,000.the current spot rate is b32.03 /$, and the dollar-based interest is 6.78% for the 1-year period. 1-year loans are 12.04% in baht.a. assuming expected inflation rates of 4.3 % and 1.24% in thailand and the united states, respectively, for the coming year, according to purchase power parity, what would the effective cost of funds be in thai baht terms? b. if eac's foreign exchange advisers believe strongly that the thai government wants to push the value of the baht down against the dollar by5% over the coming year (to promote its export competitiveness in dollar markets), what might the effective cost of funds end up being in baht terms? c. if eac could borrow thai baht at 13% per annum, would this be cheaper than either part (a) or part (b) above?