Internal Control of Cash ReceiptsThe procedures used for over-the-counter receipts are as follows. At the close of each day's business, the sales clerks 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. An employee from the cashier's office counts the cash, compares the total with the memo, and takes the cash to the cashier's office.a. Identify the weak link in internal control. An employee from the cashier's office counts the cash and compares the total with the memorandum.An employee from the cashier's office takes the cash to the cashier's office.An employee from the treasurer's office takes the cash to the cashier's office.The sales clerks should have access to the cash register tapes.The sales clerks should not have access to the cash register tapes.b. Who should remove the cash register tapes from the register?A teller from the bankAn employee from the cashier's officeThe accounts payable clerkThe company presidentThe sales clerk

Internal controls are those policies and procedures that are implemented by an business organization…

Answered: Internal Control of Cash Receipts The…

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter5: Internal Control And Cash

Section: Chapter Questions

Problem 5.1P

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Internal Control of Cash Receipts

The procedures used for over-the-counter receipts are as follows. At the close of each day's business, the sales clerks 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. An employee from the cashier's office counts the cash, compares the total with the memo, and takes the cash to the cashier's office.

a. Identify the weak link in internal control.

An employee from the cashier's office counts the cash and compares the total with the memorandum.
An employee from the cashier's office takes the cash to the cashier's office.
An employee from the treasurer's office takes the cash to the cashier's office.
The sales clerks should have access to the cash register tapes.
The sales clerks should not have access to the cash register tapes.

b. Who should remove the cash register tapes from the register?

A teller from the bank
An employee from the cashier's office
The accounts payable clerk
The company president
The sales clerk

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