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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 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
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