Requirement

$1.$

Evaluate the internal controls in each situation as strong or$$ weak, and give the reason for your answer.

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Part $1$

Cash$$ receipts:

a$.$

FranklinFranklin

Carpet Mill has

$$

$$

strong

weak

internal controls. There is

$$

$$

a good separation of duties

a good system of documenting transactions

not a good separation of duties

not a good system of documenting transactions

$.$

$$

$$

Different people receive cash, record the cash, and deposit the cash

The accountant should maintain detailed records of the accounts receivable that are collected

The cash collected is properly summarized and recorded by the accountant.

The same person receives cash, records the cash, and deposits the cash

$.$