The following procedures were recently installed by Raspberry Creek Company:a. After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing.b. The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer’s office for approval.c. Along with petty cash expense receipts for postage, office supplies, etc., several postdated employee checks are in the petty cash fund.d. At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers.e. At the end of each day, all cash receipts are placed in the bank’s night depository.f. At the end of each day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the deposit receipt obtained from the bank.g. All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts.h. The bank reconciliation is prepared by the cashier, who works under the supervision of the treasurer.InstructionsIndicate whether each of the procedures of internal control over cash represents (1) a strength or (2) a weakness. For each weakness, indicate why it exists.

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Asked Dec 15, 2019
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The following procedures were recently installed by Raspberry Creek Company:
a. After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and supporting documentation to the accounts payable clerk for filing.
b. The accounts payable clerk prepares a voucher for each disbursement. The voucher along with the supporting documentation is forwarded to the treasurer’s office for approval.
c. Along with petty cash expense receipts for postage, office supplies, etc., several postdated employee checks are in the petty cash fund.
d. At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers.
e. At the end of each day, all cash receipts are placed in the bank’s night depository.
f. At the end of each day, an accounting clerk compares the duplicate copy of the daily cash deposit slip with the deposit receipt obtained from the bank.
g. All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts.
h. The bank reconciliation is prepared by the cashier, who works under the supervision of the treasurer.

Instructions

Indicate whether each of the procedures of internal control over cash represents (1) a strength or (2) a weakness. For each weakness, indicate why it exists.

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Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company's objectives, related to operations, financial reporting, and in conformity with laws and regulations.

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Indicate whether each of the procedures of internal control over cash represents (1) a strength or (2) a weakness.

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procedures of internal control over cash represents (1) strength (2) Weakness Procedures No. After necessary approvals have been obtained for the payment of a voucher, the treasurer signs and mails the check. The treasurer then stamps the voucher and supporting documentation as paid and returns the voucher and (1) Strength supporting documentation to the accounts payable clerk for filing. The accounts payable clerk prepares a voucher for each a. disbursement. The voucher along with the supporting (1) Strength documentation is forwarded to the treasurer's office for approval. Along with petty cash expense receipts for postage, office supplies, etc., several post-dated employee checks are in the petty cash fund. At the end of the day, cash register clerks are required to use their own funds to make up any cash shortages in their registers. At the end of each day, all cash receipts are placed in the bank's night depository. At the end of each day, an accounting clerk compares the b. (2) Weakness C. (2) Weakness d. (1) Strength e. duplicate copy of the daily cash deposit slip with the deposit receipt obtained from the bank. All mail is opened by the mail clerk, who forwards all cash remittances to the cashier. The cashier prepares a listing of the cash receipts and forwards a copy of the list to the accounts receivable clerk for recording in the accounts. The bank reconciliation is prepared by the cashier, who works under the supervision of the treasurer. (2) Weakness f. (1) Strength g. (2) Weakness h.

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The following are the weakness in the internal control procedures over the cash: (c) Employees must be strictly not allowed to use the petty cash fund for personal expenses. Also, post-dated checks should not be accepted. (d) When the clerks require using their own funds to make the cash shortages in their register, then they attempt to short-change the customers. This is done to avoid any shortages at the end of day. There can also be circumstances, where overage of money may occur. So, further when this occurs regularly, customers will make complaints. Thus, one needs to report them end of each day and when this becomes a regular issue, then remedial action needs to taken. (g) The mails are opened by mail clerk and forward the cash remittances to the cashier. He prepares the listing of the cash receipts and the same if copied to accounts receivable clerk for recording in the accounts. It is a weakness. The mail clerks need to prepare initial listing of cash remittances before forwarding the cash receipts to the cashier and this act as an initial accountability for the cash receipts. Copies of listing of remittances are forwarded by the mail clerk to the accounts receivable clerk for reporting in the company accounts.

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