JRCES Question 3 CALCULATOR PRINTER VERSION The following control procedures are used in Keaton Company for over-the-counter cash receipts. (a) For each procedure, explain the weakness in internal control and identify the control principle that is violated. Weakness Principle Viol Procedure 1. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. 2. Allover-the-counter receipts are registered by three derks who share a cash register with a single cash drawer. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked briefcase in the stock room until it is deposited in the bank At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total 5. The company accountant makes the bank deposit and then records the day's receipts. Tatyto s responsity for cash on specific clerk Cash sot deguately orotected from the Teutant should not hach Sot decendent counted Charssot bonded and background checks are not conducted Question Attempts: 0 of used o e e CALCULATOR PRINTER VERSION BACK NEXT cash receipts. ntrol principle that is violated. Weakness Principle Violated Independent internal verification Human resource controls Segregation of duties Documentation procedures Establishment of responsibility Physical controls Question Attempts: 0 of 3 used SAVE FOR LAR