Question
Topic: Fran Jones is the petty-cash custodian. Fran approves all requests for payment out of the $200 fund, which is replenished at the end of
Topic: Fran Jones is the petty-cash custodian. Fran approves all requests for payment out of the $200 fund, which is replenished at the end of each month. At the end of each month, Fran submits a list of all accounts and amounts charged, and a check is written to her for the total amount. Fran is the only person ever to tally the fund.
Required: Write a detailed memo to your instructor: 1. Indicating the apparent internal control weakness in the procedure described above. 2. Suggesting alternative procedures to eliminate the weaknesses. 3. Explaining two administrative, two preventive, and two detective controls a company may institute over cash. Please be specific.
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