Internal control : Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations. Principles of internal control: Authorizing the responsibility Segregation of duties Documenting and recording transactions Physical controls Periodic independent verification Human resource controls Over-the-counter receipts : The basic method of receiving cash at the counter is known as over-the-counter receipts. Cash receipts are counted on a daily basis. To identify : The internal control principles involved in control procedures of over-the-counter cash receipts

Question

Want to see the full answer?

Answer 1

Question

Chapter 7, Problem 7.5BE

To determine

Internal control: Internal control is a process which ensures continuous reliability of accomplishment of a company’s objectives, related to operations, financial reporting, and in conformity with laws and regulations.

Principles of internal control:

Authorizing the responsibility

Segregation of duties

Documenting and recording transactions

Physical controls

Periodic independent verification

Human resource controls

Over-the-counter receipts: The basic method of receiving cash at the counter is known as over-the-counter receipts. Cash receipts are counted on a daily basis.

To identify: The internal control principles involved in control procedures of over-the-counter cash receipts

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Rosenquist Company has the following internal control procedures over cash receipts. Identify the internal control principle that is applicable to each procedure. a. All over-the-counter receipts are entered in cash registers. Human Resource Controls Segregation of Duties Establishment of Responsibility Independent Internal Verification b. All cashiers are bonded. Documentation Procedures Physical Controls C. Daily cash counts are made by cashier department supervisors. The duties of receiving cash, recording cash, and custody of cash are assigned to d. different individuals. e. Only cashiers may operate cash registers.

Which of the following is not an example of control procedures to safeguard cash received from accounts receivables? A.All receipts of cash should be recorded in the cash acount B.Employees keep records of all the receipts,with details of the amount received C.One employee is in charge of receiving cash and another employee in charge of preparing accouting records D.One employee should be responsible for collecting and banking cash receipts on a daily basis

Majaan Company has the following internal control procedures over cash receipts. Instruction: Identify the internal control principle that is applicable to each procedure. All over-the-counter receipts are registered on cash registers. All cashiers are bonded. Daily cash counts are made by cashier department supervisors. The duties of receiving cash, recording cash, and custody of cash are assigned to different individuals. 5. Only cashiers may operate cash registers