CP5-1 (Static) Identifying Internal Control Principles in Cash Receipts and Disbursements [LO 5-3]
The following procedures are used by Richardson Light Works.
CP5-1 (Static) Identifying Internal Control Principles in Cash Receipts and Disbursements [LO 5-3] The following procedures are used by Richardson Light Works. a. When customers pay cash for lighting products, a receipt is issued to the customer. b. When customers pay cash for lighting products, the cash is placed in a cash register. C. At the end of each day, a cash count sheet is prepared. d. The manager checks the accuracy of the cash count sheet before taking the cash to the bank for deposit. e. Receiving reports are prepared to indicate the quantity and condition of goods received from suppliers. f. Warehouse personnel are not allowed to fill in for absent accounting department staff, and accounting department staff are not allowed to fill in for absent warehouse personnel. Required: 1. For each statement (a)(f), identify the internal control principle being applied. 2. If the company's accountant pays supplier invoices by check without comparing to purchase orders and receiving reports, what internal control principle is violated? Required: 1. For each statement (a)(f), identify the internal control principle being applied. 2. If the company's accountant pays supplier invoices by check without comparing to purchase orders and receiving reports, what internal control principle is violated? Complete this question by entering your answers in the tabs below. Required 1 Required 2 For each statement (a)-(f), identify the internal control principle being applied. Document procedures a. When customers pay cash for lighting products, a receipt is issued to the customer. b. When customers pay cash for lighting products, the cash is placed in a cash register. c. At the end of each day, a cash count sheet is prepared. d. The manager checks the accuracy of the cash count sheet before taking the cash to the bank for deposit. e. Receiving reports are prepared to indicate the quantity and condition of goods received from suppliers. f. Warehouse personnel are not allowed to fill in for absent accounting department staff, and accounting department staff are not allowed to fill in for absent warehouse personnel. Independently verify Restrict access Segregate duties None of these options Required 1 Required 2 > Complete this question by entering your answers in the tabs below. Required 1 Required 2 If the company's accountant pays supplier invoices by check without comparing to purchase orders and receiving reports, what internal control principle is violated? What internal control principle is violated? required 2 Document procedures Independently verify Restrict access Segregate duties None of these options
