Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following internal control procedures are used by Red Company for cash receipts and disbursements: Cashiers receive all over - the - counter receipts and
The following internal control procedures are used by Red Company for cash receipts and disbursements:
Cashiers receive all overthecounter receipts and place the cash
into a single cash drawer.
When cash in the drawer exceeds $ it is placed in an envelope
marked "cash" and stored in a drawer in the supervisor's office.
The company's accountant makes daily bank deposits.
The clerk in the receiving department authorizes all payments for
purchases.
Blank cheques are kept in the main office.
The company's internal auditor prepares bank reconciliations
annually.
Instructions
For each of the above procedures, explain the weakness in internal control. identify the control policy or procedureviolatedand
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started