The following control procedures over cash receipts transactions are prescribed by the David Company:

1. Restrictive endorsement of checks upon receipt.
2. Daily cash register readings and cash counts by supervisors.
3. Daily cash deposits.
4. Internal verification of deposits and cash summaries by treasurer's office.
5. Internal verification of daily cash receipts journal entries with cash summaries.
6. Prelisting of remittances from customers in mail room.
7. Segregation of functions between general accounting and accounts receivable accounting.
8. Storing cash in vaults and safes prior to deposit.
Required:

a. Indicate the function and the specific internal accounting control objective served by each procedure.

b. Identify the interna! accounting control principle that is involved.

c. Identify an error or irregularity that may be prevented or detected by the control procedure.

d. Indicate two specific tests of transactions that may be performed to determine whether each control procedure is operating as prescribed.