current attempt in progress\nyour answer is partially correct.\njolson company has the following internal…
current attempt in progress\nyour answer is partially correct.\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. Documentation procedures: Cash registers provide a record (documentation) of over - the - counter receipts.
- b. Human resource controls: Bonding cashiers is a human resource control measure (e.g., to protect against theft as the bonding company may cover losses).
- c. Independent internal verification: Cash counts by supervisors (independent of the cashier doing the day - to - day handling of cash) is an independent check.
- d. Segregation of duties: Separating the duties of receiving, recording, and custody of cash among different individuals is a classic segregation of duties principle.
- e. Establishment of responsibility: Designating only cashiers to operate cash registers establishes clear responsibility for that task.
Answer:
a. Documentation procedures b. Human resource controls c. Independent internal verification d. Segregation of duties e. Establishment of responsibility