A. The following procedures were recently installed by Raspberry Creek Company. Indicate under the Response column whether each of the procedures of internal control over cash represents a Strength or a Weakness. For each weakness, indicate at least one potential risk or threat. (50 points) Response 1 2 3 Internal Control Procedure After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing. The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer's office for approval. At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers. At the end of each day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the deposit receipt obtained from the bank All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts. 4 5 B. Classify each of the following reconciling items of the Tic and Tac Company as any one of the items below. Write the letter corresponding to your answer. (50 points) a) b) c) d) e) an addition to the bank balance a deduction from the bank balance an addition to the book balance a deduction from the book balance not a reconciling item 1. Bank service charges 2. Bookkeeper recorded check #849 as $693 instead of the correct amount of $963 3. Collection of note receivable plus interest revenue by bank 4. Deposits in transit 5. Bank added deposit to Tic and Tac's account in error 6. Bank charge for printing checks 7. Outstanding checks 8. Bookkeeper failed to record a check that was returned with the bank statement 9. Check returned by the bank marked NSF 10.Bank withdrew from Tic and Tac's account $1,100 for a check written for $110 C. Bonus (up to 5 points) Provide at least 2 specific characteristics of an effective internal control system for cash receipts over the counter (such as those applicable to cashiers in the supermarket, department store, convenience store or food stalls)