Question 4 of 8

Question 4 of 8 View Policies Current Attempt in Progress The following control procedures are used in Keaton Company for over-the-counter cash receipts. 1. 2. 3. 4. 5. Each store manager is responsible for interviewing applicants for cashier jobs. They are hired if they seem honest and trustworthy. All over-the-counter receipts are registered by three clerks 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 stockroom 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. The company accountant makes the bank deposit and then records the day's receipts. For each weakness, suggest a change in the procedure that will result in good internal control. Procedure 1. 2. 3. 4. 5. B 1 Weakness Cashiers are not bonded and background checks are not conducted. Inability to establish responsibility for cash on a specific clerk. Cash is not adequately protected from theft. Cash is not independently counted. The accountant should not handle cash. rx eTextbook and Media Save for Later Attempts: O of 2 used O Word(s) Submit Answer