Homework Answers
Solution:
| Event | Cash receipts | Strength or Weakness |
| 1 | The record keeper of cash transactions is also incharge of depositing cash receipts in the bank | Weakness |
| 2 | One employee with many year of experience is solely incharge of opening cash receipts received by mail | Weakness |
| 3 | All sales transactions, even for those less than $1, are recorded on a cash register | Strength |
| 4 | Two employees are tasked with opening mail that contains cash receipts | Strength |
| 5 | Cash register have a permanent, locked in electronic record of cash transaction | Strength |
| 6 | The clerk who has access to cash in the register cannot access the accounting records to change transaction details | Strength |
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Determine whether each cash receipts procedure is an internal control strength or weakness. Strength or Weakness...
Determine whether each cash receipts procedure is an internal control strength or weakness. Strength or Weakness...
Determine whether each cash receipts procedure is an internal control strength or weakness. Strength or Weakness Cash receipts Salesclerks are not required to enter the sale in the register after each transaction. Instead, the company gives employees flexibility to enter sales at the end of the day or week. The recordkeeper of cash transactions is also in charge of depositing cash receipts in the bank. One employee with many years of experience is solely in charge of opening cash receipts...
Determine whether each procedure described below is an internal control strength or weakness; then identify the...
Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control violated or followed for each procedure. The same employee requests, records, and makes payment for purchases of inventory. The company saves money by having employees involved in operations perform the only review of internal controls. Time is saved by not updating records for use of supplies. The recordkeeper is not allowed to write checks or initiate EFTs. Each salesclerk is in charge...
Determine whether each procedure described below is an internal control strength or weakness, then identify the...
Determine whether each procedure described below is an internal control strength or weakness, then identify the internal control violated or followed for each procedure 1. The company does not allow employees with access to cash to modify accounting records. 2. The company devotes resources towards keeping accurate accounting records for machinery 3. An employee cannot approve their own request for purchases of inventory 4. The owner does not use ID scanners to limit access to expensive merchandise Instead, the owner...
Determine whether each procedure described below is an internal control strength or weakness, then identify the...
Determine whether each procedure described below is an internal control strength or weakness, then identify the internal contre violated or followed for each procedure. 1. The company does not allow employees with access to cash to modify accounting records. 2 The company devotes resources towards keeping accurate accounting records for machinery 3. An employee cannot approve their own request for purchases of inventory 4. The owner does not use ID scanners to limit access to expensive merchandise. Instead, the owner...
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Che Exercise 6-3 Internal control strengths and weaknesses LO C1 Determine whether each procedure described below...
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ternal Control and Cash an Company for cash receipts. metal box in the office where the...
ternal Control and Cash an Company for cash receipts. metal box in the office where the office manager control E2.2 (L01, 2) C The following control procedures are used in Sheridan Company for cash. 1. To minimize the risk of robbery, cash in excess of $200 is stored in a locked metal bovi manager's office until it is deposited in the bank. All employees know where the keeps the key to the box. ny one of three employees may 2....
The following control procedures are used at Torres Company for over-the-counter cash receipts. (a) For each...
The following control procedures are used at Torres Company for over-the-counter cash receipts. (a) For each procedure, explain the weakness in internal control, and identify the control principle that is violated. (b) For each weakness, suggest a change in procedure that will result in good internal control. 1. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stock room until it is deposited in the bank. (a) Weakness: Principle: ...
A. Internal Control The following control procedures are used at Torres Company for over-the-counter cash receipts....
A. Internal Control The following control procedures are used at Torres Company for over-the-counter cash receipts. 1. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stock room until it is deposited in the bank. 2. All over-the-counter receipts are processed by three clerks who use a cash register with a single cash drawer. 3. The company accountant makes the bank deposit and then records the day's receipts. 4. At...
Determine whether each cash receipts procedure is an internal control strength or weakness. Strength or Weakness Cash receipts Salesclerks are not required to enter the sale in the register after each transaction. Instead, the company gives employees flexibility to enter sales at the end of the day or week. The recordkeeper of cash transactions is also in charge of depositing cash receipts in the bank. One employee with many years of experience is solely in charge of opening cash receipts...
Determine whether each procedure described below is an internal control strength or weakness, then identify the internal control violated or followed for each procedure 1. The company does not allow employees with access to cash to modify accounting records. 2. The company devotes resources towards keeping accurate accounting records for machinery 3. An employee cannot approve their own request for purchases of inventory 4. The owner does not use ID scanners to limit access to expensive merchandise Instead, the owner...
Determine whether each procedure described below is an internal control strength or weakness, then identify the internal contre violated or followed for each procedure. 1. The company does not allow employees with access to cash to modify accounting records. 2 The company devotes resources towards keeping accurate accounting records for machinery 3. An employee cannot approve their own request for purchases of inventory 4. The owner does not use ID scanners to limit access to expensive merchandise. Instead, the owner...
Determine whether eac tify the internal contro 1. The same employee re each procedure described below is an internal control strength or weakness, then iden- ontrol principle violated or followed for each procedure. me employee requests, records, and makes payment for purchases of inventory. many saves money by having employees involved in operations perform the only review of Exer Inter and 2. The company saves money internal controls. Time is saved by not updating records for use of supplies. The...
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Che Exercise 6-3 Internal control strengths and weaknesses LO C1 Determine whether each procedure described below is an internal control strength or weakness; then identify the internal control violated or followed for each procedure. 1. The owner does not use ID scanners to limit access to expensive merchandise. Instead, the owner argues they hire honest employees 2. The same employee requests, records, and makes payment for purchases of inventory. 3. Several salesclerks share the same cash drawer. 4. Employees that...
ternal Control and Cash an Company for cash receipts. metal box in the office where the office manager control E2.2 (L01, 2) C The following control procedures are used in Sheridan Company for cash. 1. To minimize the risk of robbery, cash in excess of $200 is stored in a locked metal bovi manager's office until it is deposited in the bank. All employees know where the keeps the key to the box. ny one of three employees may 2....
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