locker rentals corp. operates locker rental services

Question of 071 points Locker Rentals Corp (LRC operates locker rent services at several locations throughout the city including the airport bus depot shopping malls, and the s ite Unlike some of the old mechanic lockers that change a fred amount per use LRC s lockers operate electronically and are able to change based on hours of use. The locker systemami a daily message to LRC s e indicating the number of hours that lockers have been used, which the orice manager ses to determine when cash should be picked up at each location LRC can receipts system is described below 1. For each statement (a ). Identify the internal control principle being applied Segregate duties Two employees cash collection desks") are responsible for collecting cash from the lockers Based on instructions from a. the office manager one des collects cash from specie locations on the west side of the city and the other collects from specific locations on the east side b. 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 court sheets in a prenumbered daily cash summary and files the prenumbered cash count sheets by date The superviso places the cash in a locked abou t is taken to the bank for depost The supervisor not the cash collection clerks, takes the cash to the bank for deposit The supervisor prepares a duplicate deposit sip, which the bank stamps after the deposit is made to indicate the date and amount of the deposit The Supervisor sends the stamped bank deposit slip and daily cash summary to the accountant, who compares them before preparing a joumal any debiting Cash and crediting Locker Rental Revenue 2. A v eral months LRC Supervisor is nested forstwing new Identify the internal control weakness that oured this theft to occur 510.000 from the company The supervisor was not professional e d to account for the cash The cash collection clerks should have been made responsible for deposing the cash in the bank The supervisor was responsible for handling the cash preparing the cash count sheet and deposing cash in the bank The accounting system was not adequate to detect the fraud The cash collection Clerks should have been at least four in number one for each ares-cast west north out References eBook & Resources