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.
The sales clerk should not have access to the cash register tapes.
An employee from the treasurer's office takes the cash to the cahier's office
The sales clerk should have access to the cash register tapes.
An employee from the cashier's office counts the cash and compares the total witht the memorandum
b. Who should remove the cash register tapes from the register?
The company president
An employee from the cashier's office
A teller from the bank
The accounts payable clerk