Problem 1. The following control procedures are used at Feliz Company for over-the-counter cash receipts.

1. All over-the-counter receipts are registered by four clerks who use a cash register with a single cash drawer (till).

2. To minimize the risk of robbery, cash in excess of $200 is stored in an unlocked drawer in a desk in the back room.

3. Each clerk counts his/her own receipts at the end of the day and reconciles that amount to the cash register total.

4. A bookkeeper prepares a journal entry to record the day's cash receipts, then deposits the receipts in the bank.

5. To save funds, cashiers do not get vacation days.

Instructions

(a) For each procedure, explain the weakness in internal control, and identify the control principle that is violated.

(b) For each weakness, suggest a change in procedure that will result in good internal control.