1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
E4-3. The following control procedures are used in Elke Company for over-the-counter cash receipts.
1. Cashiers are experienced; thus, they are not bonded.Internal Control Weakness: There is a higher chance of theft with more experienced cashiers. Change: Cashiers should be bonded experience or not experienced. 2. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.Internal control weakness: Disorganization and interference may occur with just a single cash drawer.Change: Each clerk should have their own cash drawer 3.To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank.Internal control weakness: The money in this is not kept in a good place, and the clerks could easily commit robbery. Change: The money should be kept in a safe with the key held by the accountant.4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.Internal control weakness: The cashier could falsely claim what was really earned that day. Change: The accountant should count the total receipts.5. The company accountant makes the bank deposit and then records the day’s receipts.Internal Control weakness: The company accountant can falsely claim what there really was. Change: The cashier should be the one to do this task.
P4-3A
Company Cash Balance: 7695.80
Minus $25 bank charge
Plus 15,000 minus $30 interest
Outstanding checks $1980.10
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1.(a) driving force: marketing needs, customer demand increased, as soon as airport company more and more, more and more companies as a transit point to headthrow, more and more customers complain, therefore, reduce the average customer dissatisfaction. Another, government could increase the employment rate and also to the BAA could give government for high taxes.…
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1. Mingenback Company has the following internal control procedures over cash disbursements. Identify the internal control principle that is applicable to each procedure. 1. Company checks are prenumbered. 2. The bank statement is reconciled monthly by an internal auditor. 3. Blank checks are stored in a safe in the treasurer’s office. 4. Only the treasurer or assistant treasurer may sign checks. 5. Check signers are not allowed to record cash disbursement transactions. 1. Physical, mechanical, and electronic controls. 2. Other controls. 3. Independent internal verification .4.Segregation of duties. 5. Establishment of responsibility.…
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Based on (b), the control environment sets the tone of an organization, influencing the control consciousness of its people. It is the foundation for all the other components of internal control, providing discipline and structure for the whole organization. It is important to an entity in the overall attitude and actions of managements. To overcome the weaknesses for the internal control system over sales, the company should have separation of the duties. The company should assign separate cash handlings and accounting duties among various staff members and even various departments, if possible. For example, some company do not allow the person who makes that bank deposits to be the only one running the cash register and do not allow the person who places suppliers’ orders to sign off on checks to suppliers. The company should make sure that cash reporting responsibilities are spread out enough to prevent theft by collusion. This can be done by giving some responsibility to front- line employees, some to front- line manages and some to the upper-levels managers. In this case, the company should assign different people to do for the job. One of the sales clerks prepares the sales invoice, one responsible in pre-numbering the sales invoice and one in charge on receiving the payment where there are cash sales.…
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Controls in the casino are cash movement and operations at the casino game tables. The cash and cash equivalents have three main elements; individual accountability, formal procedures and controls over count rooms. Individual accountability means that personnel are held accountable for the specific amount of cash they are in charge of. If shortages or other problems persistent problem continue it is ground for dismissal. Formal procedures consist of personnel signing of on opener slips, counter check, fill slips all are signed at certain times during the movement of cash. A computer keeps track of the time the money is transferring from the fill cashier to the dealer, if the time on the floor is too long the computer notifies security. The count room’s security is tight, with supervision at all time to ensure no money is being stolen. Count rooms are equipped with a metal door, alarm, closed-circuit television cameras and audio and video taping capabilities.…
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The lock box used to store the envelopes presents a physical control that prevents people other than the attendants from accessing the money. The attendants are required to complete a utilization form and revenue form. They also need to file all the empty envelopes. These paper works will be submitted to the manager and mailed to the headquarters, which indicates a paper control. When CMS receives the deposit from regional managers, the headquarters will compare the amount with revenue form. At the end of month, the accountant will review and compare the two forms with information on the envelopes,…
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Sports clubs are non-profit organisations, they render services to their members and they use income to upgrade the facilities used by the members. Although the accounting principles for a sports club and a business are the same, they are different in the way that the object of a business is to make a profit where as the object of Sports club is to enable its members to take part in one or more kinds of activities.…
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