Dottie Martin is the CEO of Martin Industries. She seeks your advice as to how to assign the functions among her three clerical employees in order to achieve the highest degree of internal control.
Below are the 8 functions performed by these clerks?
(a) Maintains disbursement (payments) journal.
(b) Reconciles bank account.
(c) Prepares checks for signature.
(d) Opens mail and lists receipts.
(e) Deposits cash receipts.
(f) Maintains accounts receivable records.
(g) Determines when accounts receivable are uncollectible.
(h) Is responsible for the petty cash fund.

(1) Advise Dottie on how to distribute the various functions amount Clerk # 1, Clerk #2, and Clerk #3, assuming all functions require about the same amount of time.
(2) Explain at least three combinations of functions that would be unsatisfactory.

  • CreatedJanuary 21, 2015
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