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Suppose The Right Rig Dealership is opening a regional office in Omaha, Cary Regal, the office manager, is designing the internal control system. Regal proposes

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Suppose The Right Rig Dealership is opening a regional office in Omaha, Cary Regal, the office manager, is designing the internal control system. Regal proposes the following procedures for credit checks on new customers, sales on account, cash collections, and write-offs of uncollectible receivables: (Click the icon to view the proposed procedures.) Recall the components of internal control. Identify the internal control weakness in this situation, and propose a way to collect it Recall the components of internal control. Identify the internal control weakness in this situation, and propose a way to correct it. The internal control weakness is that the With access to cash, a cash received from a customer and The credit department can then write-off the customer's account as uncollectible, and the company will stop pursuing collection from the customer. The credit department runs a credit check on all customers who apply for credit. When an account proves uncollectible, the credit department authorizes the write-off of the accounts receivable. Cash receipts come into the credit department, which separates the cash received from the customer remittance slips. The credit department lists all cash receipts by customer name and amount of cash received. The cash goes to the treasurer for deposit in the bank. The remittance slips go to the accounting department for posting to customer accounts. The controller compares the daily deposit slip to the total amount posted to customer accounts. Both amounts must agree. Suppose The Right Rig Dealership is opening a regional office in Omaha, Cary Regal, the office manager, is designing the internal control system. Regal proposes the following procedures for credit checks on new customers, sales on account, cash collections, and write-offs of uncollectible receivables: (Click the icon to view the proposed procedures.) Recall the components of internal control. Identify the internal control weakness in this situation, and propose a way to collect it Recall the components of internal control. Identify the internal control weakness in this situation, and propose a way to correct it. The internal control weakness is that the With access to cash, a cash received from a customer and The credit department can then write-off the customer's account as uncollectible, and the company will stop pursuing collection from the customer. The credit department runs a credit check on all customers who apply for credit. When an account proves uncollectible, the credit department authorizes the write-off of the accounts receivable. Cash receipts come into the credit department, which separates the cash received from the customer remittance slips. The credit department lists all cash receipts by customer name and amount of cash received. The cash goes to the treasurer for deposit in the bank. The remittance slips go to the accounting department for posting to customer accounts. The controller compares the daily deposit slip to the total amount posted to customer accounts. Both amounts must agree

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