Arexl Media Company owns several radio stations in the Chicago area. Most of Arexl’s revenues come from on-the-air advertising, and some revenues come from banner advertising on Arexl’s Web site. Alexl has an office staff consisting of five persons: an office manager, a secretary, a sales manager, a marketing manager, and a general manager. Liliana Byrd, Arexl’s, office manager, opens the mail each day and then does the following:
• Immediately separates any account payment checks from clients. She places the checks in the company safe until the end of the week.
• On Friday each week, she removes the checks from the safe and posts them to accounts receivables.
• Friday afternoon, before the banks close, she deposits all checks on hand in the company bank account.
• She returns to the office and files the deposit slip.
• At the end of each month, she reconciles the bank statement.
• After reconciling the bank statement, she reconciles total deposits for the month against total revenues from credit sales and total credits to accounts receivables.
Evaluate the internal controls for these procedures described, and make suggestions for improvements in the internal control processes