The following control procedures are used at Torres Company for over-the-counter cash receipts. Fareach procedure ecpera (a) (b) For each procedure, explain the weakness in internal control, and identify the control principle that is violated. 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 attaché case in the stockroom until it is deposited in the bank.
(a) Weakness: Principle:
(b) Recommended Change:
2. All over-the-counter receipts are registered 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:
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The following control procedures are used at Torres Company for over-the-counter cash receipts. Fare...
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