The following control procedures are used in Parker Company for over-the-counter cash receipts. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer. At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. The company accountant makes the bank deposit and then records the day's receipts. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stockroom until it is deposited in the bank.
The following control procedures are used in Parker Company for over-the-counter cash receipts. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer. At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total. The company accountant makes the bank deposit and then records the day's receipts. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stockroom until it is deposited in the bank.
Chapter8: Fraud, Internal Controls, And Cash
Section: Chapter Questions
Problem 5MC: There are several elements to internal controls. Which of the following would not address the issue...
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Someone answered the question below but its incomplete . I was checking my answers I am unsure about the solution , For example #1 recommended change would be enhance the personnel policies?Please advise.
7 The following control procedures are used in Parker Company for over-the-counter cash receipts.
- Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy.
- All over-the-counter receipts are registered by three clerks who share a cash register with a single cash drawer.
- At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total.
- The company accountant makes the bank deposit and then records the day's receipts.
- To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stockroom until it is deposited in the bank.
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Internal Control:
It refers to the rule and regulations adopted by an organization to ensure operational effectiveness and efficiency, accurate financial reporting and adhering to the laws and policies.
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