QUESTION 4

Your small business client, Phillips Computer Repair Shop, is experiencing financial difficulties and has to lay off one of its three employees in the accounting area. You have been asked to determine what duties should be assigned to the remaining two employees - Bryan and Chris - to maintain the best separation of duties. Assign the following 10 duties to each of the two employees. Explain your rational for each assignment. If Phillip, the owner, must assume some responsibilities, make that recommendation with a convincing argument because he is likely to balk!

1. Reconcile bank statement.

2.Open mail and list checks.

3.Prepare checks for Phillips signature.

4.Prepare payroll checks.

5.Maintain personnel records.

6.Prepare deposit and take to bank.

7.Maintain petty cash.

8.Maintain accounts receivable records.

9.Maintain general ledger.

10.Reconcile accounts receivable records to general ledger account.