The following are deficiencies in internal controls over cash.

1. Alicia prepares the deposit and opens the mail when the cashier isn't available.
2. The mail clerk may not prepare remittance advice for the A/R department if a customer does not submit a one with payment.
3. Sometimes, the treasurer's department does not stop the supporting documents for cash disbursements.
4. John handles customer correspondence concerning monthly statements and making bank deposits.
5. Mike handles incoming mail and prepares bank reconciliations; however, the bank reconciliations are not done on time.

For each deficiency:

1. Please explain what applicable audit procedure(s) should be conducted to identify whether any material misstatements exist

2. Explain why the auditor should think this procedure is best for this situation.

3. Please consider each deficiency independently of the others. While each deficiency presents potential issues, identify two that stand out as the worse with the audtor's professional knowledge. Explain rationale.

4. How should the auditor implement a change to improve those deficiencies?

Please explain it briefly with clear formatting such as:

a: Alicia prepares the deposit and opens the mail when the cashier isn't available.

1.

2.

3.

4.