Listed below are seven errors or problems that might occur in the processing of cash transactions. Also shown is a list of internal control principles. Evaluate each possible error and cite a principle that is listed that would reduce the probability of the error occurring. If none of the principles given will correct the problem, write "None." If you think more than one principle is appropriate, list all principles that apply.

Possible Errors or Problemps

Internal Control Principles

An employee steals the cash collected from a customer for an account receivable and conceals this theft by issuing a credit memorandum indicating that the customer returned the merchandise.

A small fire destroys $3$ days of cash receipts.

The official designated to sign checks is able to steal blank checks and issue them without fear of detection.

A sales clerk in serving customers often rings up a sale for less than the actual amount and then keeps the additional cash collected from the customer.

Three cashiers use one cash register drawer and the cash in the drawer is often short of the balance kept on hand.

Establishmer of responsibility

Establishmel.. of responsibility, Documentation procedures, Human resource controls Human resource controls

Independent internal verification

None

Physical control devices, Establishment of responsibility

Segregation of duties, Documentation procedures

$6.$ Each cashier counts his own register drawer each day and verbally reports the results to the supervisor.

$7.$ Cashiers with over $5-$years of experience are not bonded,