Weaknesses in Internal Control. The Art Appreciation Society of Gateshead, UK, operates a museum for the benefit

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Weaknesses in Internal Control. The Art Appreciation Society of Gateshead, UK, operates a museum for the benefit and enjoyment of the community. During hours when the museum is open to the public, two clerks who are positioned at the entrance collect a

£5.00 admission fee from each non-member patron. Members of the Art Appreciation Society are permitted to enter free of charge upon presentation of their membership cards. At the end of each day, one of the clerks delivers the proceeds to the treasurer. The treasurer counts the cash in the presence of the clerk and places it in a safe. Each Friday afternoon the treasurer and one of the clerks deliver all cash held in the safe to the bank, and receive an authenticated deposit slip which provides the basis for the weekly entry in the cash receipts journal.

The Board of Directors of the Art Appreciation Society has identified a need to improve its control procedures for cash admission fees. The board has determined that the cost of installing turnstiles, sales booths, or otherwise altering the physical layout of the museum will greatly exceed any benefits which may be derived. However, the board has agreed that the sale of admission tickets must be an integral part of its improvement efforts.
Cold & Cough, CAs, have been asked by the Board of Directors of the Art Appreciation Society to review the internal control structure for cash admission fees and provide suggestions for improvement.
Required:
Indicate weaknesses in the existing procedures for cash admission fees, which Cold & Cough should identify, and recommend one improvement for each of the weaknesses identified.
Organize the answer as in the following illustrative example:

image text in transcribed

[Adapted and reprinted with permission from AICPA. Copyright © 2000 & 1985 by American Institute of Certified Public Accountants]

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Principles Of Auditing An Introduction To International Standards On Auditing

ISBN: 9780273684107

2nd Edition

Authors: Rick Stephan Hayes, Roger Dassen, Arnold Schilder, Philip Wallage

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