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Business, 13.10.2019 06:10 nicolemaefahey

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 stockroom until it is deposited in the bank. (a) weakness: principle: (b) recommended change: 2. all over-the-counter receipts are processed by three clerks who use a cash register with a single cash drawer. (a) weakness: principle: (b) recommended change: 3. the company accountant makes the bank deposit and then records the day’s receipts. (a) weakness: principle: (b) recommended change: 4. at the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. (a) weakness: principle: (b) recommended change: 5. cashiers are experienced; they are not bonded. (a) weakness: principle: (b) recommended change:

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