5-3 Identifying Internal Control Principles in Cash Receipt Processes [LO 5-3] Locker Rentals Corp. (LRC) operates locker rental services at several locations throughout the city including the airport, bus depot, shopping malls, and athletics facilities. Unlke some of the old mechanical ockers that charge a fixed amount per use, LRC's lockers operate electronically and are able to charge based on hours of use. The locker system transmits a daily message to LRC's office indicating the number of hours that lockers have been used, which the office manager uses to determine when cash should be picked up at each location. LRC's cash receipts system is desanbed below. Required: 1. For each statement (e) (g), identify the internal control priniple being applied. Two employees (cash collection clerks) are responsible for cash from the lockers. Based on instructions from a. the office manager, one clerk collects cash from specific locations ot the west side of the city and the other collects from b. When each cash collection clerk returns with the cash, a supervisor counts the cash and prepares a cash count sheet specific locations on the east side The supervisor summarizes the cash count sheets in a prenumbered dally cash summary and files the prenumbered cash count sheets by dete d. The supervisor places the cash in a locked cashbox until it i taken to the bank for deposit LThe supervisor, mot the cash collection clerks, takes the cash to the bank for deposit The supervisor prepares a duplicate deposit slip, which the bank stamps ater the deposit is made, to indicate the date and amount of the deposit The supervisor sends the stamped bank deposit slip and daily cash summary to the accountant, who compares them betore preparing a journal entry debiting Cash and crediting Locker Rental Revenue 2. After several months, LRC's supervisor is arrested for stealing nearly $10,000 from the company Idervity the internal control weakness that allowed this theft to cecur The accounting system was not adequate to detect the fraud The cash collection clerks should have been at least four in number, one for each area-east, west north, south The cash collection clorks should have been made responsible for depositing the cash in the bank dne oupenveson w repnble fer handing the cash, preparing the cash count sheet, ana depositing cash in the bank The supervisor was not professionaly qualified to acoount