The following control procedures are used in Parker Company for over-the-counter cash receipts.
The following control procedures are used in Parker Company for over-the-counter cash receipts.
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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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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