Assuming there no problem as to the ability of any of the employees, the company requests...

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Assuming there no problem as to the ability of any of the employees, the company requests that you assign these functions to the three employees to achieve the highest degree of internal control. Assume that these employees will perform no other accounting functions than the ones listed and that any accounting functions not listed will be performed by people other than these three employees. Required: State how you would distribute these functions among the three employees. Assume that with the exception of the nominal jobs of the bank reconciliation and the issuance of credits on returns and allowances, all functions require an equal amount of time. Employee No. 1: He already maintains the general ledger. The other task or tasks assigned to him include: prepare checks for signature issue credit memos on returns and allowances O maintain cash disbursements journal maintain accounts receivable ledger handle and deposit cash receipts maintain accounts payable ledger O reconcile the bank account Employee No. 1: He already prepare checks for signature. The other task or tasks assigned to him include: maintain cash disbursements journal O handle and deposit cash receipts maintain general ledger O issue credit memos on returns and allowances Assuming there no problem as to the ability of any of the employees, the company requests that you assign these functions to the three employees to achieve the highest degree of internal control. Assume that these employees will perform no other accounting functions than the ones listed and that any accounting functions not listed will be performed by people other than these three employees. Required: State how you would distribute these functions among the three employees. Assume that with the exception of the nominal jobs of the bank reconciliation and the issuance of credits on returns and allowances, all functions require an equal amount of time. Employee No. 1: He already maintains the general ledger. The other task or tasks assigned to him include: prepare checks for signature issue credit memos on returns and allowances O maintain cash disbursements journal maintain accounts receivable ledger handle and deposit cash receipts maintain accounts payable ledger O reconcile the bank account Employee No. 1: He already prepare checks for signature. The other task or tasks assigned to him include: maintain cash disbursements journal O handle and deposit cash receipts maintain general ledger O issue credit memos on returns and allowances

Answer rating: 100% (QA)

To achieve the highest degree of internal control while distributing the accounting functions among the three employees I would assign the tasks as fo... View the full answer