Determine whether each cash receipts procedure is an internal control strength or weakness. 1. If a salesclerk makes an error in recording a cash sale, she can access the register’s electronic record to correct the transaction. 2. All sales transactions, even those for less than $1, are recorded on a cash register. 3. Two employees are tasked with opening mail that contains cash receipts. 4. One of the two employees tasked with opening mail is also the recordkeeper for the business. 5. The supervisor has access to both cash and the accounting records. 6. Receipts are given to customers only for sales that are above $20.
Determine whether each cash receipts procedure is an internal control strength or weakness. 1. If a salesclerk makes an error in recording a cash sale, she can access the register’s electronic record to correct the transaction. 2. All sales transactions, even those for less than $1, are recorded on a cash register. 3. Two employees are tasked with opening mail that contains cash receipts. 4. One of the two employees tasked with opening mail is also the recordkeeper for the business. 5. The supervisor has access to both cash and the accounting records. 6. Receipts are given to customers only for sales that are above $20.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 9MC: What is the advantage of using technology in the internal control system? A. Passwords can be used...
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Determine whether each cash receipts procedure is an internal control strength or weakness.
1. If a salesclerk makes an error in recording a cash sale, she can access the register’s electronic record to
correct the transaction.
2. All sales transactions, even those for less than $1, are recorded on a cash register.
3. Two employees are tasked with opening mail that contains cash receipts.
4. One of the two employees tasked with opening mail is also the recordkeeper for the business.
5. The supervisor has access to both cash and the accounting records.
6. Receipts are given to customers only for sales that are above $20.
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