The following questions are included on the internal control questionnaire for Ingrid Company related to cash.

1. Do different people handle cash and maintain the records of cash receipts?

2. Is a prelisting of cash made immediately for mail receipts?

3. Are cash receipts deposited intact daily?

4. Is monthly bank reconciliation prepared by someone not involved in handling cash?

5. Does an employee verify and approve cash discounts taken?

6. Does someone other than the cashier obtain the validated deposit slip and compare the balance to the cash summary?

REQUIRED: 

a. Identify the financial statement assertion to which the control relates.

b. Identify a potential misstatement that could arise from the absence of the control.

c. Identify the tests of controls an auditor might perform for controls that exist.

d. Indicate the substantive tests of transactions that an auditor might perform after performing the tests of controls if the control is ineffective.