Trey Osborne, administration of Valley View Clinic, seeks your advice. Valley View Clinic employs 2 people in
Question:
Trey Osborne, administration of Valley View Clinic, seeks your advice. Valley View Clinic employs 2 people in the office, Jim Bates and Rhonda Clark. Osborne asks you how to assign the various office functions to the 3 people (including Osborne) to achieve good internal control. Here are the duties to be performed by the 2 office workers and Osborne:
a. Record cash payments
b. Record cash receipts
c. Receive incoming cash from patients
d. Reconcile the bank account
e. Deposit cash receipts
f. Sign checks for payment
Required
Propose a plan that divides duties a. through f. to Bates, Clark, and Osborne. Your goal is to divide the duties so as to achieve good internal control for the clinic.
Step by Step Answer:
Financial Accounting
ISBN: 978-0135012840
7th edition
Authors: Walter T. Harrison, Charles T. Horngren