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The following list presents various internal control strengths (S) or risks (R) that may be found in a company's revenues and cash collection processes. If
The following list presents various internal control strengths (S) or risks (R) that may be found in a company's revenues and cash collection processes. If it neither an internal control strength or risk associated with the revenue or cash collection process, put (N/A) Credit is authorized by the credit manager. Checks paid in excess of $5,000 require the signatures of two authorized members of management. A cash receipts journal is prepared by the Treasurer's department Collections received by check are received by the company receptionist, who has no additional recordkeeping responsibilities. Collections received by check are immediately forwarded unopened to the accounting department A bank reconciliation is prepared on a monthly basis by the Treasurer's department. Receiving reports are prepared on pre-printed, numbered forms. Payments to vendors are made promptly upon receipt of goods or services Cash collections are deposited in the bank account on a weekly basis. Customer returns must be approved by a designated manager before a credit memo is prepared
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