Computer Giant, Inc., makes all sales on account. Susan Phillips, accountant for the company, receives and opens incoming mail. Company procedure requires Phillips to separate customer checks from the remittance slips, which list the amounts that Phillips posts as credits to customer accounts receivable. Phillips deposits the checks in the bank. At the end of each day she computes the day's total amount posted to customer accounts and matches this total to the bank deposit slip. This procedure ensures that all receipts are deposited in the bank.

Required

As a consultant hired by Computer Giant, Inc., write a memo to management evaluating the company's internal controls over cash receipts from customers. If the system is effective, identify its strong features. If the system has flaws, propose a way to strengthen the controls.