Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Evaluating Internal Control of Cash The following procedures were recently installed by Raspberry Creek Company: After necessary approvals have been obtained for the payment of

Evaluating Internal Control of Cash

The following procedures were recently installed by Raspberry Creek Company:

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.

Along with petty cash expense receipts for postage, office supplies, etc., several postdated employee checks are in the petty cash fund.

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, all cash receipts are placed in the bank's night depository.

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.

The bank reconciliation is prepared by the cashier, who works under the supervision of the treasurer.

Required:

Indicate whether each of the procedures of internal control over cash listed above represents (1) a strength or (2) a weakness.

Item Strength/Weakness
a.
b.
c.
d.
e.
f.
g.
h.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Clinical Audit In Pharmaceutical Development

Authors: Michael Hamrell

1st Edition

0367399334, 978-0367399337

More Books

Students also viewed these Accounting questions