Nature Hill Middle School wants to raise money for a new sound system for its auditorium. The
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The day of the dance, Rob wrote a check from the account to pay the DJ. Obnoxious Al, however, said that he accepted only cash and did not give receipts. So Rob took $200 out of the cash box and gave it to Al. At the dance, Rob had Sobia Hamm working at the entrance to the gymnasium, collecting tickets from students, and selling tickets to those who had not prepurchased them. Rob estimated that 400 students attended the dance. The following day, Rob closed out the bank account, which had $250 in it, and gave that amount plus the $180 in the cash box to Principal Coleman. Principal Coleman seemed surprised that, after generating roughly $2,000 in sales, the dance netted only $430 in cash. Rob did not know how to respond.
Instructions
Identify as many internal control weaknesses as you can in this scenario, and suggest how each could be addressed.
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Related Book For
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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