E5-3 Identifying Internal Control Principles in Cash Receipt Processes (LO 5-3] Locker Rentals Corp. (LRC) operates locker rental services at several locations throughout the city including the airport, bus depot, shopping malls, and athletics facilities. Unlike some of the old mechanical lockers that charge a fixed amount per use, LRC's lockers operate electronically and are able to charge based on hours of use. The locker system transmits a daily message to LRC's office indicating the number of hours that lockers have been used, which the office manager uses to determine when cash should be picked up at each location. LRC's cash receipts system is described below. Required: 1. For each statement (a)-(g), identify the internal control principle being app Two employees ("cash collection clerks") are responsible for collecting cash from the lockers. Based on instructions from the office manager, one clerk collects cash from specific locations on the west side of the city and the other collects from specific locations on the east side. When each cash collection clerk returns with the cash, a supervisor counts the cash and prepares a cash count sheet. The supervisor summarizes the cash count sheets in a prenumbered daily cash summary and files the prenumbered cash count sheets by date. The supervisor places the cash in a locked cashbox until it is taken to the bank for deposit. e. The supervisor, not the cash collection clerks, takes the cash to the bank for deposit. The supervisor prepares a duplicate deposit slip, which the bank stamps after the deposit "Jis made to indicate the date and amount of the deposit The supervisor sends the stamped bank deposit slip and daily cash summary to the 9. accountant, who compares them before preparing a journal entry debiting Cash and crediting Locker Rental Revenue. 2. After several months, LRC's supervisor is arrested for stealing nearly $10,000 from the company. Identify the internal control weakness that allowed this theft to occur. The supervisor was responsible for handling the cash, preparing the cash count sheet, and depositing cash in the bank The cash collection clerks should have been at least four in number, one for each area-east, west, north, south. The accounting system was not adequate to detect the fraud, The cash collection clerks should have been made responsible for depositing the cash in the bank. The supervisor was not professionally qualified to account for the cash