The following process is used by the Otis Company to process cash receipts. Describe the positive and negative elements of this process. Include operational, information, and control issues. What additions or other changes to the process do you recommend?
Mail for Otis Company is delivered to Sally, the company receptionist. Sally opens the mail and prepares a daily log of checks received. She sends the RAs to Al, the accounts receivable clerk, and the checks to Tony, the treasurer. Sally files the check log by date. Tony the treasurer prepares a deposit slip in duplicate and endorses the checks. Tony then takes the deposit slip to the bank and files the duplicate slip by date. Al uses the RAs to update the customer accounts to reflect the payment.