Dental Laboratory Service prepares crowns, dentures, and other dental appliances. All work is performed on account, with regular monthly billing to participating dentists. Melany Rank, accountant for Dental Laboratory Service, receives and opens the mail. Company procedure requires her to separate customer checks from the remittance slips, which list the amounts she posts as credits to customer accounts receivable. Rank deposits the checks in the bank. She computes each day's total amount posted to customer accounts and matches this total to the bank deposit slip. This procedure is intended to ensure that all receipts are deposited in the bank.

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As the auditor of Dental Laboratory Service, write a memo to management to evaluate the company's internal controls over cash receipts from customers. If the system is effective, identify its strong features. If the system has flaws, propose a way to strengthen the controls.