As anew auditor for the CPA firm of Rawls, Keoto, and Landry, you have been assigned to
Question:
As anew auditor for the CPA firm of Rawls, Keoto, and Landry, you have been assigned to review the internal controls over mail cash receipts of Adirondack Company.
Your review reveals that checks are promptly endorsed “For Deposit Only,” but no list of the checks is prepared by the person opening the mail. The mail is opened either by the cashier or by the employee who maintains the accounts receivable records. Mail receipts are deposited in the bank weekly by the cashier.
Instructions Write a letter to L. S. Osman, owner of the Adirondack Company, explaining the weaknesses in internal control and your recommendations for improving the system.
ETHICS CASE
Step by Step Answer:
Financial Accounting Tools For Business Decision Making
ISBN: 9780471347743
2nd Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso