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In: Accounting

1 All cash is deposited intact, in the bank account, daily. BothCash PaymentsCash Receipts 2 Blank...

1 All cash is deposited intact, in the bank account, daily.

BothCash PaymentsCash Receipts
2 Blank cheques are stored in a safe in the controller’s office.

Cash PaymentsBothCash Receipts
3 All cashiers are bonded.

Cash ReceiptsCash PaymentsBoth
4 All over-the-counter receipts are recorded on cash registers.

BothCash PaymentsCash Receipts
5 All payments, except for petty cash transactions, are made by cheque.

BothCash ReceiptsCash Payments
6 Cheque signers are not allowed to record cash payment transactions.

BothCash ReceiptsCash Payments
7 Company cheques are pre-numbered.

BothCash ReceiptsCash Payments
8 Daily cash counts are made by cashier department supervisors.

Cash ReceiptsCash PaymentsBoth
9 Only cashiers may operate cash registers.

Cash PaymentsCash ReceiptsBoth
10 Only the controller or assistant controller may sign cheques.

Cash ReceiptsBothCash Payments
11 The bank statement is reconciled monthly by an internal auditor.

BothCash ReceiptsCash Payments
12 The duties of receiving cash, recording cash, and maintaining custody of cash are assigned to different individuals.

Cash ReceiptsBothCash Payments

Solutions

Expert Solution

1. All cash is deposited intact, in the bank account, daily
Physical Controls

2. Blank cheques are stored in a safe in the controller’s office
Physical Controls

3. All cashiers are bonded
Human Resource Controls

4. All over-the-counter receipts are recorded on cash registers
Physical Controls

5. All payments, except for petty cash transactions, are made by cheque
Physical Controls

6. Cheque signers are not allowed to record cash payment transactions
Segregation of Duties

7. Company cheques are pre-numbered
Documentation Procedures

8. Daily cash counts are made by cashier department supervisors
Independent Internal Verification

9. Only cashiers may operate cash registers
Establishment of Responsibility

10. Only the controller or assistant controller may sign cheques
Establishment of Responsibilty

11. The bank statement is reconciled monthly by an internal auditor
Independent Internal Verification

12. The duties of receiving cash, recording cash, and maintaining custody of cash are assigned to different individuals
Segregation of Duties

ekkarill92 answered 2 years ago
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