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  • Answer Sheet For Internal Control Exercise 01

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    Linh Tam Vu Ngoc
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    The document outlines 5 weaknesses in internal controls over cash handling procedures and recommends changes to address each issue. Specifically, it notes issues with storing cash in an unlocked briefcase, establishing responsibility for cash among clerks, segregating duties between accounting and cashiers, independently counting cash, and bonding cashiers. The recommended changes are to secure cash in a safe before deposits, use separate cash drawers, have cashiers rather than accounting make deposits, have a supervisor count cash, and require cashiers be bonded.

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    Answer Sheet for Internal Control Exercise 01

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    The document outlines 5 weaknesses in internal controls over cash handling procedures and recommends changes to address each issue. Specifically, it notes issues with storing cash in an unlocked briefcase, establishing responsibility for cash among clerks, segregating duties between accounting and cashiers, independently counting cash, and bonding cashiers. The recommended changes are to secure cash in a safe before deposits, use separate cash drawers, have cashiers rather than accounting make deposits, have a supervisor count cash, and require cashiers be bonded.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    8 views1 page

    Answer Sheet For Internal Control Exercise 01

    Uploaded by

    Linh Tam Vu Ngoc
    The document outlines 5 weaknesses in internal controls over cash handling procedures and recommends changes to address each issue. Specifically, it notes issues with storing cash in an unlocked briefcase, establishing responsibility for cash among clerks, segregating duties between accounting and cashiers, independently counting cash, and bonding cashiers. The recommended changes are to secure cash in a safe before deposits, use separate cash drawers, have cashiers rather than accounting make deposits, have a supervisor count cash, and require cashiers be bonded.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 1

    Procedures Weakness in Internal Control Control Principle Violated Recommended Change

    1 Store cash in unlocked Physical control Put Cash into safe before
    briefcase deposit to the bank

    2 Inability to establish Establishment of Separate cash drawers


    responsibility for cas on a Responsibility for employees
    specific clerk

    3 The accountant should not Segregation of duties Cashiers department


    handle cash should make the deposit

    4 Cash is not independently Independent internal A supervisor should


    counted verification count the cash

    5 Cashiers are not bonded Human Resources controls Get cashiers bonded

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