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P5-1 Evaluate internal control of cash The following procedures were recently installed by The China Shop: All sales are rung up on the cash register,

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P5-1 Evaluate internal control of cash The following procedures were recently installed by The China Shop: All sales are rung up on the cash register, and a receipt is given to the customer. All sales are recorded on a record locked inside the cash register b. At the end of a shift, each cashier counts the cash in his or her cash register, unlocks the the record to c. Checks received through the mail are given daily to the accounts receivable clerk for cash register record, and compares the amount of cash with the amount on determine cash shortages and overages. recording collections on account and for depositing in the bank. Disbursements are made from the petty cash fund only after a petty cash receipt has been completed and signed by the payee. e. Each cashier is assigned a separate cash register drawer to which no other cashier has access. f. The bank reconciliation is prepared by the accountant. g. Vouchers and all supporting documents are perforated with a PAID designation after being paid by the treasurer Instructions Indicate whether each of the procedures of internal control over cash represents (1) a strength or (2) a weakness. For each weakness, indicate why it exists

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