ch 7 handoutinternalcontrolexamples 07f

ch 7 handoutinternalcontrolexamples 07f - 5. The company...

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Accounting 207 – Chapter 7 Hand Out – Internal Controls The following control procedures are used in Precision Controls for Cash Transactions: 1. Cashiers are experienced; thus, they are not bonded. 2. All over the counter receipts are registered by three clerks who share a cash register with a single cash drawer. 3. To minimize the risk of robbery, cash in excess of $100 is stored in an unlocked attaché case in the stock room until it is deposited in the bank. 4. At the end of each day the total receipts are counted by the cashier on duty and reconciled to the cash register total.
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Unformatted text preview: 5. The company accountant makes the bank deposit and then records the days receipts. 6. Each week Beverly leaves 100 company checks in an unmarked envelope on a shelf behind the cash register. 7. The store manager personally approves all payments before signing and issuing checks. 8. The company checks are unnumbered. 9. After payment, bills are filed in a paid invoice folder. 10. The company accountant prepares the bank reconciliation and reports any discrepancies to the Owner....
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This note was uploaded on 12/12/2010 for the course ACCT ACCT207 taught by Professor Dragone during the Fall '10 term at University of Delaware.

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