E7.2 (LO 1, 2) The following control procedures are used in Sheridan Company for cash receipts. Identify weaknesses in internal control over cash receipts and suggest improvements. 1. To minimize the risk of robbery, cash in excess of $200 is stored in a locked metal box in the office manager's office until it is deposited in the bank. All employees know where the office manager keeps the key to the box. 2. The company has one cash register with a single cash drawer. Any one of three employees may operate the cash register. 3. All employees handling cash receipts are experienced and therefore are not bonded. 4. In order to increase efficiency, the assistant controller opens all of the mail, prepares the bank deposit, and prepares the journal entries to record the cash receipts. 11 2. The company has one cash register with a single cash drawer. Any one of three employees may operate the cash register. 3. All employees handling cash receipts are experienced and therefore are not bonded. 4. In order to increase efficiency, the assistant controller opens all of the mail, prepares the bank deposit, and prepares the journal entries to record the cash receipts. 5. Due to a lack of storage space, all remittance advices and debit or credit card sales receipts are destroyed each weekend. Instructions a. For each procedure, explain the weaknesses in internal control, and identify the control activity that is violated. b. For each weakness, suggest a change in procedure that will result in good internal control