this was the one before which is already done.

15/16 ew Policies how Attempt History Your answer is correct The following control procedures are used at Torres 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 (b) For each weakness, suggest a change in procedure that will result in good internal control. 1 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 (a) Weakness: Cash is not adequately protected from theft Principle: Physical Controls {b) Recommended Change Cash should be stored in a safe until it is deposited in bank 2. All over-the-counter receipts are processed by three clerks who use a cash register with a single cash drawer (a) Weakness Inability to establish responsibility for cash with a specific derk D. Establishment of Responsibility Principle: (b) Recommended Change! There should be separate cash drawers and register codes for each derk. 3. The company accountant makes the bank deposit and then records the day's receipts. (a) Weakness: The accountant should not handie cash Principle Segregation of Duties [b] Recommended Change The cashier's department should make the deposits At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total Weakness: Cash is not independently mounted t-player/index.html?launchid=9c446fc3-9567-446a-8d8f-2015149c4cf#/question/ porco Weakness: Cash is not adequately protected from theft Principle: Physical Controls (b) Recommended Change: Cash should be stored in a safe until it is disposited in bank. All over-the-counter receipts are processed by three clerks who use a cash register with a single cash drawer Weakness: Inability to establish responsibility for cash with a specific clerk Principle: Establishment of Responsibility (b) Recommended Change: There should be separate cash drawers and register codes for each clerk The company accountant makes the bank deposit and then records the day's receipts. Weakness: The accountant should not handle cash Principle: Segregation of Duties (b) Recommended Change: The cashier's department should make the deposits. At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total (a) Weakness: Cash is not independently counted Principle Independent Internal Verification (b) Recommended Change: A cashier office supervisor should count cath Cashiers are experienced; they are not bonded (a) Weakness: Cashiers are not bonded Principle: Human Resource Controls (b) Recommended Change All cashiers should be banded rrent attemptin Progress The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements () (b) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated For each weakness, suggest a change in the procedure that will result in good internal control 1. Company checks are stored in an unmarked envelope on a shelf behind the cash register (a) Weakness Principle (b) Recommended Change: The store manager personally approves all payments before she signs and issues checks (a) Weakness: Principle: (6) Recommended Change: The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the ste authorized to purchase goods for resale by disbursing cash from the register. The purchase is documented by having the stor paper a description of the item that was purchased and the amount that was paid. The employee the signs the paper and put (a) Weakness: Principle > > (b) Recommended Change: After payment, bills are filed in a paid invoice folder Change 2 The store manager personally approves all payments before she signs and issues checks (a) Weakness: V Principle: (h) Recommended Change 3. The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the sto authorized to purchase goods for resale by disbursing cash from the register. The purchase is documented by having the stor paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and put (a) Weakness () Recommended Change: 4. After payment, bills are filled in a paid invoice folder (a) Weakness Principle > (b) Recommended Change: 5. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner, (a) Weakness: Principle: (5) Recommended Change 15/16 ew Policies how Attempt History Your answer is correct The following control procedures are used at Torres 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 (b) For each weakness, suggest a change in procedure that will result in good internal control. 1 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 (a) Weakness: Cash is not adequately protected from theft Principle: Physical Controls {b) Recommended Change Cash should be stored in a safe until it is deposited in bank 2. All over-the-counter receipts are processed by three clerks who use a cash register with a single cash drawer (a) Weakness Inability to establish responsibility for cash with a specific derk D. Establishment of Responsibility Principle: (b) Recommended Change! There should be separate cash drawers and register codes for each derk. 3. The company accountant makes the bank deposit and then records the day's receipts. (a) Weakness: The accountant should not handie cash Principle Segregation of Duties [b] Recommended Change The cashier's department should make the deposits At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total Weakness: Cash is not independently mounted t-player/index.html?launchid=9c446fc3-9567-446a-8d8f-2015149c4cf#/question/ porco Weakness: Cash is not adequately protected from theft Principle: Physical Controls (b) Recommended Change: Cash should be stored in a safe until it is disposited in bank. All over-the-counter receipts are processed by three clerks who use a cash register with a single cash drawer Weakness: Inability to establish responsibility for cash with a specific clerk Principle: Establishment of Responsibility (b) Recommended Change: There should be separate cash drawers and register codes for each clerk The company accountant makes the bank deposit and then records the day's receipts. Weakness: The accountant should not handle cash Principle: Segregation of Duties (b) Recommended Change: The cashier's department should make the deposits. At the end of each day, the total receipts are counted by the cashier on duty and reconciled to the cash register total (a) Weakness: Cash is not independently counted Principle Independent Internal Verification (b) Recommended Change: A cashier office supervisor should count cath Cashiers are experienced; they are not bonded (a) Weakness: Cashiers are not bonded Principle: Human Resource Controls (b) Recommended Change All cashiers should be banded rrent attemptin Progress The following control procedures are used in Bunny's Boutique Shoppe for cash disbursements () (b) For each procedure, explain the weakness in internal control and identify the internal control principle that is violated For each weakness, suggest a change in the procedure that will result in good internal control 1. Company checks are stored in an unmarked envelope on a shelf behind the cash register (a) Weakness Principle (b) Recommended Change: The store manager personally approves all payments before she signs and issues checks (a) Weakness: Principle: (6) Recommended Change: The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the ste authorized to purchase goods for resale by disbursing cash from the register. The purchase is documented by having the stor paper a description of the item that was purchased and the amount that was paid. The employee the signs the paper and put (a) Weakness: Principle > > (b) Recommended Change: After payment, bills are filed in a paid invoice folder Change 2 The store manager personally approves all payments before she signs and issues checks (a) Weakness: V Principle: (h) Recommended Change 3. The store purchases used goods for resale from people that bring items to the store. Since that can occur anytime that the sto authorized to purchase goods for resale by disbursing cash from the register. The purchase is documented by having the stor paper a description of the item that was purchased and the amount that was paid. The employee then signs the paper and put (a) Weakness () Recommended Change: 4. After payment, bills are filled in a paid invoice folder (a) Weakness Principle > (b) Recommended Change: 5. The company accountant prepares the bank reconciliation and reports any discrepancies to the owner, (a) Weakness: Principle: (5) Recommended Change