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Internal control over cash transactions Liste transact d below are seven errors or problems that might occur in the processing of cash ions. Also shown

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Internal control over cash transactions Liste transact d below are seven errors or problems that might occur in the processing of cash ions. Also shown is a separate list of internal control procedures. Indicate the internal rol procedure that should prevent the error or problem from occurring. If none of the cont control procedures would effectively prevent the error, place an X in the space provided Possible Error or Problem 41 42. A purchase invoice was paid even though the merchandise was never received. An employee issued a credit memorandum for a nonexistent sales return itn order to conceal his theft of the amount received in payment of an account receivable. Management is unaware that blank checks are being issued for unauthorized 43 expenditures by the official designated to sign checks. A salesclerk collects the full selling price from a customer but rings up the sale at less than actual price and pockets the difference 45 46 Several days' cash receipts are lost in a fire. A new employee often gives customers an incorrect amount of change. No one has discovered that amounts deposited in the company's bank account by the cashier over the last few years are frequently smaller than amounts forwarded to him from the mailroom or sales department. Internal Control Procedures (a.) Periodic reconciliation of bank statements to accounting records (b.) Use of a Cash Over and Short account. (c.) Adequate separation of duties. (d.) Use of pre-numbered sales tickets. (e.) Depositing each day's cash receipts intact in the bank. (f.) Use of electronic cash registers equipped with optical scanners to read magnetically coded labels on merchandise. (g.) Immediate preparation of a control listing when cash is received and the comparison of this listing with bank deposits. (h.) Cancellation of paid vouchers. (i). Requirement that a voucher be prepared as advance authorization of every cash disbursement

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