The following control procedures are used in Keaton 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.

Procedure				Weakness		Principle Violated
1.		Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy.		Select a weakness in internal control Cash is not adequately protected from theftThe accountant should not handle cashCashiers are not bonded and background checks are not conductedCash is not independently countedInability to establish responsibility for cash on a specific clerk		Select a control principle that is violated Human resource controlsEstablishment of responsibilitySegregation of dutiesPhysical controlsIndependent internal verificationDocumentation procedures
2.		All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.		Select a weakness in internal control Cash is not independently countedInability to establish responsibility for cash on a specific clerkThe accountant should not handle cashCashiers are not bonded and background checks are not conductedCash is not adequately protected from theft		Select a control principle that is violated Physical controlsIndependent internal verificationSegregation of dutiesEstablishment of responsibilityDocumentation proceduresHuman resource controls
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.		Select a weakness in internal control The accountant should not handle cashCash is not independently countedInability to establish responsibility for cash on a specific clerkCash is not adequately protected from theftCashiers are not bonded and background checks are not conducted		Select a control principle that is violated Human resource controlsSegregation of dutiesPhysical controlsDocumentation proceduresIndependent internal verificationEstablishment of responsibility
4.		At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total.		Select a weakness in internal control Inability to establish responsibility for cash on a specific clerkCash is not adequately protected from theftCash is not independently countedThe accountant should not handle cashCashiers are not bonded and background checks are not conducted		Select a control principle that is violated Establishment of responsibilityDocumentation proceduresHuman resource controlsPhysical controlsIndependent internal verificationSegregation of duties
5.		The company accountant makes the bank deposit and then records the days receipts.		Select a weakness in internal control Cash is not independently countedThe accountant should not handle cashCashiers are not bonded and background checks are not conductedInability to establish responsibility for cash on a specific clerkCash is not adequately protected from theft		Select a control principle that is violated Establishment of responsibilitySegregation of dutiesDocumentation proceduresHuman resource controlsPhysical controlsIndependent internal verification