Control weaknesses and related risks - cash receipts 1. Describe the control weaknesses depicted in the system flowchart. 2. Discuss the controls that need to be implemented to mitigate the risk in 1. above

PROBLEM 1 1 Mail Room Clerk 1 Mail Room Clerk 2 Accounts Receivable Department Remittance Remittance Advice Advice Check Check Check Remittance List Remittance Advice Open Mail AR Sub Prepare Ledger and Reconcile Remittance List, Remit advice Distribute RA and Check Reconcile, and Checks Record in Cash Receipts Journal, and Journal Accounts, Deposit Cash AR Control Remittance Remittance GL Cash Advice List Check Check Remittance List Deposit Remittance Remittance Slip Advice Advice Remittance Check List BANK