Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following control procedures are used in Keaton Company for over-the-counter cash receipts. For each procedure, explain the weakness in internal control and identify

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed

The following control procedures are used in Keaton Company for over-the-counter cash receipts. For each procedure, explain the weakness in internal control and identify the control principle that is violated. 1. Procedure Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. 2. All over-the- counter receipts are registered by three clerks who share a cash register with a single cash drawer. 3. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stock room until it is deposited in the bank. Weakness Principle Violated

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information Systems

Authors: Marshall B. Romney, Paul J. Steinbart

13th edition

133428532, 978-0133428537

More Books

Students also viewed these Accounting questions