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

(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.

1. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attach case in the stockroom until it is deposited in the bank.

(a)

Weakness:

Principle:

(b)

Recommended Change:

2.

All over-the-counter receipts are registered by three clerks who use a cash register with a single cash drawer.

(a) Weakness

Principle:

(b) Recommended Change:

3. The company accountant makes the bank deposit and then records the days receipts.

a) Weakness

Principle

b) Recommended Change:

4.

At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total.

a) Weakness

Principle:

b) Recommended Change:

5. Cashiers are experienced; they are not bonded.

a) weakness

Principle:

b) recommended change: