The following situations suggest either a strength or weakness in an internal control activity:

1. At Tingley's, Iryna and Inder work alternate lunch hours. Normally, Iryna works the cash register at the checkout counter, but during her lunch hour Inder takes her place. They both use the same cash drawer and jointly count cash at the end of the day.

2. The Do It Corporation accepts both cash and credit cards for its sales. Due to privacy legislation that requires credit card information to be shredded within three months, it shreds all credit card slips after they are processed.

3. The mail clerk at Genesis Legal Services prepares a daily list of all cash receipts. The cash receipts are forwarded to a staff accountant, who deposits the cash in the company's bank account. The list is sent to the accounts receivable clerk for recording.

4. The Candy Store can only afford a part-time bookkeeper. The bookkeeper's responsibilities include making the bank deposit, recording transactions, and reconciling the bank statement.

5. The Decorator Shoppe counts inventory at the end of each month. Two staff members count the inventory together. It is then priced and totalled by the accounting department and reconciled to the perpetual inventory records. Any variances are investigated.

Instructions

(a) State whether each situation above is a control strength or weakness and explain why.

(b) For each weakness, suggest an improvement.