Question

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 received by mail. All sales transactions, even those for less than $1, are recorded on a cash register. 5. Two employees are tasked with opening mail that contains cash receipts. 6. Cash registers have a permanent, locked-in electronic record of each transaction.

Answer 1

	Particulars	Strength / Weakness	Explanation
1	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	Weakness	Sales should be entered in the register as and when they occur by clerk. This reduces the burden of entering all transactions at once at the end of day or week.
2	The recordkeeper of cash transactions is also incharge of depositing cash receipts in the bank	Weakness	The cash recordkeeping and depositing should be done by two separate individuals as in this way, there is less chance of misappropriations
3	One employee with many years of experience is solely in charge of opening cash receipts received by mail	Weakness	The mail of cash receipts should be recorded by two employees and recorded and acknowledged by both
4	All sales transactions, even those for less than $1, are recorded in cash register	Strength	If many small transactions are not recorded than they may lead to big difference later, so all transactions even if small should be recorded
5	Two employees are tasked with opening mail that contains cash receipts	Strength	As explained in '3' above, cash receipt mail should be opened by two employees
6	Cash register have a permanent locked in electronic record of each transactions	Strength	This helps in keeping track of cash transactions accurately.