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What errors or abuses may occur in each of the following scenarios and what control is needed on each case: 1. Clara has responsibility for

What errors or abuses may occur in each of the following scenarios and what control is needed on each case:

1. Clara has responsibility for collecting cash & for recording the cash receipts in the accounting records.

2. John prepares & signs all checks and then records them in the accounting records. When the monthly bank statement comes, he does the bank reconciliation.

3. The XYZ company receives a monthly bank statement with canceled checks. It does not bother to reconcile the bank statement with its books.

4. Each day the XZY company makes 70 journal entries. It does not take a total of all debit & credit entries.

5. The XYZ company has an account with CITI limousine service to provide transportation for its employees in the daily conduct of their work. Each employee has a voucher book which he/she can use to provide the transportation needed.

6. XYZ company keeps a petty cash fund with $300 to meet everyday business needs. The fund is kept in the supply cabinet & may be accessed by anyone who needs cash for firm expenses.

7. XYZ company requires any individual who needs a check to be disbursed, to fill out & sign a check request form. When this is done the cash disbursement department cuts a check to the payee listed.

8. The XYZ company holds bearer securities that are waiting instructions from its owners as to final location. The company keeps these securities in a file cabinet that has a $ 9.99 combination lock on it.

9. The assistant to the controller calculates weekly the interest accrued & to be posted for each debt security. His /her calculations are used to send weekly updates to clients on their interest earned.

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