As a new auditor for the CPA firm of Blacke and Whyte, you have been assigned review the internal controls over mail cash receipts of Simon Company. Your review reveals that checks are promptly endorsed "For Deposit Only," but no list of the checks is prepared by the person opening the mail. The mail is opened either by the cashier or by the employee who maintains the accounts receivable records. Mail receipts are deposited in the bank weekly by the cashier.
Instructions
Write a letter to Frank Simon, owner of Simon Company, explaining the weaknesses in internal control and your recommendations for improving the system.