Appliances Repair and Service Corp. bills all cus¬ tomers rather than collecting in cash when services are pro¬ vided. All mail is opened by Tom Gyders, an accountant. Gyders is the most qualified person in the company who is in the office daily. He can, therefore, solve problems and respond to customers' needs quickly. Upon receipt of cash, he immediately prepares a listing of the cash and a duplicate deposit slip. Cash is deposited daily. Gyders uses the listing to enter the financial., transactions in the computerized accounting le

Imagine the owner's surprise when he discovers that Gyders has committed a major theft of the company's collec¬ tions. Gyders did so by not recording sales, recording improper credits to recorded accounts receivable, and over¬ stating receivables.

Required

a. Given that cash was prelisted, went only to the accoun¬ tant, and was deposited daily, what internal control defi¬ ciency permitted the fraud?

b. What are the benefits of a prelisting of cash? Who should prepare the prelisting and what duties should that per¬ son not perform?

c. Assume an appropriate person, as discussed in part (b), prepares a prelisting of cash. What is to prevent that per¬ son from taking the cash after it is prelisted but before it is deposited?

d. Who should deposit the cash, given your answer to part (b)?