Question

The following procedures were recently implemented by SUP Yoga Co.: a. Each cashier is assigned a separate cash register drawer to which no other cashier has access b. All sales are rung up on the cash register, and a receipt is given to the customer All sales are recorded on a record locked inside the cash register c. At the end of a shift, each cashier counts the cash in his or her cash register, unlocks the cash register record, and compares the amount of cash with the amount o the record to determine cash shortages and overages d. Checks received through the mail are given daily to the accounts receivable clerk for recording collections on account and for depositing in the bank. e. Vouchers and all supporting documents are stamped PAID after being paid by the treasurer. f. Disbursements are made from the petty cash fund only after a petty cash receipt has been completed and signed by the payee. g. The bank reconciliation is prepared by the accountant. Instructions: Indicate whether each of the procedures of internal control over cash represents a strength or weakness.. Item Strength/Weakness 3. b. C d. e. 1. ch Check My Work 3 more Check My Work uses remaining Previous Next > Email Instructor Save and Exit Submit Assignment for Gradin

Answer 1

Item	Strength/Weakness	Reason/Explanation
a.	Strength	Establishment of responsibility.
b.	Strength	Proper documentation by issuing receipts to each customer.
c.	Weakness	Cash is not independently counted. No independent internal verification.
d.	Weakness	No segregation of duties between recording and depositing.
e.	Strength	Proper documentation and defacement of vouchers.
f.	Strength	Proper documentation.
g.	Strength	Segregation of duties between handling cash and reconciling.