current attempt in progress\njolson company has the following internal control procedures over cash…
current attempt in progress\njolson company has the following internal control procedures over cash receipts.\nidentify the internal control principle that is applicable to each procedure.\na. all over - the - counter receipts are entered in cash registers.\nb. all cashiers are bonded.\nc. daily cash counts are made by cashier department supervisors.\nd. the duties of receiving cash, recording cash, and having custody of cash are assigned to different individuals.\ne. only cashiers may operate cash registers.
Answer
Brief Explanations:
- a. Using cash registers for over - the - counter receipts provides a record of transactions, which is related to documentation.
- b. Bonding cashiers is a form of insurance against potential losses due to employee dishonesty, which is part of the principle of insurance and bonding.
- c. Daily cash counts by supervisors are a form of independent verification of the cash on hand.
- d. Assigning different cash - related duties (receiving, recording, custody) to different individuals is an example of segregation of duties.
- e. Restricting cash register operation to cashiers is a way of establishing proper authorization for handling cash.
Answer:
a. Documentation procedures b. Insurance and bonding c. Independent internal verification d. Segregation of duties e. Establishment of responsibility