Peachville is a small rural town in the southeastern part of the United States. Peachville has only one bank. The Bank of Peachville closes its doors to the public at 2:00 p.m. every afternoon. After closing, the two tellers go into the back room where they perform the bookkeeping functions.

1. Does the practice followed in The Bank of Peachville provide an adequate system of internal control? Why or why not?

2. Why would the management of The Bank of Peachville tolerate the inadequate system of internal control?

3. List internal control procedures that can improve this situation.

Answer rating: 100% (QA)

Part 1 No The interior system is clearly inadequate The tell... View the full answer