The register also produces a customer receipt but keeps no internal record of the transactions. Copy 1 of the bill of lading is attached to the shipment. 2. Effective control activities help you and your department identify . are two aspects of validity internal validity and external validity. Prob 10-25 Indicate weaknesses in the existing internal control system over cash admission fees, which Smith should identify, and recommend one improvement for each of the weaknesses identified. Download Free PDF. (Only complete the necessary answer boxes.) Continue Reading. Identify the internal control weakness over cash receipts. Here are the steps to help you identify internal control weaknesses: Catalog internal control procedures Conduct a risk assessment Conduct an internal audit Train and educate staff Conduct regular inspections Look at the feedback from customers and stakeholders Examine departmental reports Catalog Internal Control Procedures Identify internal control weaknesses in cash receipts and cash disbursements. Most important, the call back cannot go to any individual who is able to initiate a wire transfer. Technical, Operational, Administrative, and Architectural Internal Control Weaknesses Four major weaknesses of the internal control system put your data at risk, and to be secure; you need to address such instances accordingly. Required: (b) Identify and explain EIGHT deficiencies in Equestrian Co's internal controls and provide a recommendation to address each of these deficiencies. Download Free PDF. b) For each weakness, describe the associated risks. Belmont Bakery makes all sales of its bread to retailers on account. At the end of the day, the clerk counts the cash in the register and gives it to the cashier for deposit in the company bank account. (LO 2, 3)Identify internal control weaknesses over cash disbursements and suggest improvements. internal controls for cash receipts and cash disbursements. Limit the petty cash replenishment amount to a total that will require replenishment at least monthly. Simple 20-30 Organizations use internal controls to protect themselves and comply with industry standards and regulations governing financial risks. Write a memo to the company treasurer indicating your recommendations for improvement.EXERCISES: SET B Identify the principles ofinternal control. By Chron Contributor Updated April 08, 2021. About . The original and the second copy are presented to the cashier, while the third copy is retained by the sales clerk in the sales book. They protect both the University and the employees handling the cash. Download Free PDF. State how the person can hurt the company. If you habitually have one or more checks that are pre-signed by one of the two required signatories, it defeats that purpose. RELATED TOPICS. Cash in the fund totals $83. All Implement an organizational policy prohibiting kickbacks . (a) True (b) False. 2. Slide 2. Keep patient funds separate from petty cash funds. Preventive Controls i. The cashier deposits the cash in the bank and forwards the remittance advices and duplicate deposit slips to the Accounting Department. a. Internal validity is only necessary in circumstances where there is a need to establish a cause and effect relationship. Planning Stage You will discover deficiencies as you perform walkthroughs which are carried out in the early stages of the engagement. Sorry, Inc. manages food concessions at local event venues. fApollo Revenue Cycle Flowchart fApollo Accounting and Control Systems: Purchasing and Expenditure Cycle The employee prepares a purchase requisition and has a supervisor approve it. Guide: Segregation of duties Identify internal control weaknesses over cash receipts and suggest improvements E8.2 (LO 1, 2) The following control procedures are used at Torres Company for over-the-counter cash receipts. Prohibit writing checks payable to cash. Internal control of cash receipts Obj|2, 3 The mailroom employees send all remittances and remittance advices to the cashier. Other collects cash and identify internal control weaknesses in cash receipts process of any weaknesses. 3. Independent verification:a) Weakness: Clerk sets up a liability based solely on the vendors invoice. Reconcile the petty cash fund before replenishing it. The first is the receipts side of equation. Download. The bank reconciliation should also include a review of the bank . The same person receives cash, records the cash, and deposits the cash. Gary Donell opens envelopes and separates the cheques from the accompanying remittance advices. Donell forwards the cheques to another employee, who . Include an explanati 2. She is spending a lot of time marketing and selling mixers and giving her cookie classes. There are five ways your organization can strengthen its internal controls over handling cash: Safeguarding Assets: Protect the organization's cash on hand by placing them in a locked cabinet or drawer with limited access (or better yet a drop safe). There is not a good separation of duties. Identify internal control principles for cash disbursements. Complex 35-45 1B Identify internal control weaknesses over cash receipts. Here are 5 ways to improve them: 1. As many as five people work each concession area with two cash registers at each location. During his first month as store manager, Jimmy encountered the following internal control situations: a. Jittery Jon's Coffee Shop has one cash register. The system includes the following features. See Page 1. a) Identify the internal control weaknesses in the cash receipts process. You might identify control weaknesses in the following audit stages: Planning - Risk assessment and walkthroughs Fieldwork - Transaction-level work Conclusion - Wrapping up A. The procedures used for over-the-counter receipts are as follows: At the close of each day's business, the salesclerks count the cash in their respective cash drawers, after which they determine the amount recorded by the cash register and prepare the memo cash form, noting any discrepancies. Establishing an ethical environment at all levels of the organization is the most important element of accountability and control. (SO 1, 3) Identify internal control weaknesses in cash receipts. This should be monitored to ensure only the right personnel have . What could you do to correct the weakness? They are a part of operation risk and compliance risk. In order to maximise cash balances, the finance director approves all purchase invoices for payment 75 days after receipt of the invoice. p7.2a (lo rondelli middle school wants to State how the person can hurt the company. Study with Quizlet and memorize flashcards containing terms like Jimmy Pace has recently been hired as the manager of Jittery Jon's Coffee Shop. apricotcat350 Lv1 28 Sep 2019 Identify the internal control weaknesses over cash receipts and payments. Slide 3. c) For each weakness provide a possible control activity. What decision led to the creation of PODS? cash receipts policy and procedures. Internal control in a payroll department safeguards employee information and protects company financial resources. R EFERENCES Internal control knowledge International Standard on Auditing (ISA) 315 &330 Identifying and assessing the risks of material misstatement through understanding the entity and its environment and responding thereto selected paragraphs. (LO 1, 2) C Cedar Grove Middle School wants to raise money for a new sound system for its auditorium. Sandra Covington, the ALTEX treasurer, checks Miller's figures by multiplying the number of . 6A Identify internal control weaknesses in cash receipts and cash disbursements. Fraud, Internal Control, and Cash ASSIGNMENT CLASSIFICATION TABLE Learning Objectives Questions Brief Exercises Do It! b) Risk: The company may be paying . Safeguarding Cash Restrictively endorse checks immediately upon receipt stating "For Deposit Only - Syracuse University" Copy 2 of the bill of lading is sent with invoice copy 4 to the accounts receivable accounting department. 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